How to Raise a Bad Debt Credit

Sometimes you may need to write off an amount owed by a customer, for example, when a customer does not pay an outstanding debt. In Simpro Premium you can apply a credit to an invoice so that it is no longer outstanding.

Learn more about credit notes in How to Raise a Customer Credit Note.

In order to make a bad debt credit distinct from other credit notes you can associate it with a bad debt account. This will ensure that it is not transferred to the same account as the rest of your credits in your accounting package.

The process for handling a bad debt credit varies depending on whether you use an income or expense account for bad debt in your accounting package. Consult your accountant if you are unsure which type of account is being used.