bad debt write offs

How do I post bad debt write offs? I need the write off to reduce the payees
balance so they don't show up on a receivables report anymore. I tried
creating an expense to offset the uncollectable debt but the payee still
shows an outstanding balance. Help please!

Chris
Sat Dec 31 11:06:48 CST 2005

"Tara in Austin" <Tara in Austin@discussions.microsoft.com> wrote in message
news:9A723321-EAE8-42F3-9588-7DFF7C2A56F0@microsoft.com...
> How do I post bad debt write offs? I need the write off to reduce the
> payees
> balance so they don't show up on a receivables report anymore. I tried
> creating an expense to offset the uncollectable debt but the payee still
> shows an outstanding balance. Help please!

I'm not familiar with what I assume is Money SB but, in general accounting,
you have to create a transfer transaction that reduces the payee's balance.
The original increase in balance was sales income. The decrease would be a
write-off or discount expense.
--
Chris Cowles
Gainesville, FL

TarainAustin
Mon Jan 02 07:24:03 CST 2006

Thanks Chris. The problem I am having is in getting the payee's balance to
zero out so he won't keep appearing on the Aging Receivables report. It
seems that no matter how I manipulate the amount to be written off, the payee
still has the same balance! I tried creating a transfer transaction, but
Money will not let me transfer from Receivables to Bad Debt... Does anyone
have any idea how to make this happen without affecting my income figures?

"Chris Cowles" wrote:

> "Tara in Austin" <Tara in Austin@discussions.microsoft.com> wrote in message
> news:9A723321-EAE8-42F3-9588-7DFF7C2A56F0@microsoft.com...
> > How do I post bad debt write offs? I need the write off to reduce the
> > payees
> > balance so they don't show up on a receivables report anymore. I tried
> > creating an expense to offset the uncollectable debt but the payee still
> > shows an outstanding balance. Help please!
>
> I'm not familiar with what I assume is Money SB but, in general accounting,
> you have to create a transfer transaction that reduces the payee's balance.
> The original increase in balance was sales income. The decrease would be a
> write-off or discount expense.
> --
> Chris Cowles
> Gainesville, FL
>
>
>
>

Chris
Mon Jan 02 09:06:33 CST 2006

"Tara in Austin" <TarainAustin@discussions.microsoft.com> wrote in message
news:77F017D8-7502-4901-A384-37F67AD0FFD5@microsoft.com...
> I tried creating a transfer transaction, but Money will not let me
> transfer from Receivables to
> Bad Debt... Does anyone have any idea how to make this happen without
> affecting my income figures?

You can't do that in any accounting system, to my knowledge. A loss of an
asset (AR) is an expense. That affects income figures or, at least, your
Profit and Loss statement.
--
Chris Cowles
Gainesville, FL

TarainAustin
Mon Jan 02 12:12:02 CST 2006

I guess I wasn't really clear - I meant without affecting what I billed
originally. For example, I billed Mr. Smith $300. He paid $200 and then
filed bankruptcy. The other $100 is bad debt. I want to write it off so Mr.
Smith is no longer on my Receivables report and I can close his account. It
seems I can only transfer from my Checking account (which is money I already
received) to bad debt, so my Receivables report still looks the same (Mr.
Smith still owe's $100). Do I pretend like Mr. Smith paid the $100 and then
transfer that to Bad Debt? I just can't seem to wrap my brain around this -
I've used other accounting systems and not had this difficulty. Thanks for
your help!

"Chris Cowles" wrote:

> "Tara in Austin" <TarainAustin@discussions.microsoft.com> wrote in message
> news:77F017D8-7502-4901-A384-37F67AD0FFD5@microsoft.com...
> > I tried creating a transfer transaction, but Money will not let me
> > transfer from Receivables to
> > Bad Debt... Does anyone have any idea how to make this happen without
> > affecting my income figures?
>
> You can't do that in any accounting system, to my knowledge. A loss of an
> asset (AR) is an expense. That affects income figures or, at least, your
> Profit and Loss statement.
> --
> Chris Cowles
> Gainesville, FL
>
>
>
>

Chris
Mon Jan 02 12:17:41 CST 2006

"Tara in Austin" <TarainAustin@discussions.microsoft.com> wrote in message
news:B3D17D14-5217-431D-8E40-975D99A503C8@microsoft.com...
>I guess I wasn't really clear - I meant without affecting what I billed
> originally. For example, I billed Mr. Smith $300. He paid $200 and then
> filed bankruptcy. The other $100 is bad debt. I want to write it off so
> Mr.
> Smith is no longer on my Receivables report and I can close his account.
> It
> seems I can only transfer from my Checking account (which is money I
> already
> received) to bad debt, so my Receivables report still looks the same (Mr.
> Smith still owe's $100). Do I pretend like Mr. Smith paid the $100 and
> then
> transfer that to Bad Debt? I just can't seem to wrap my brain around
> this -
> I've used other accounting systems and not had this difficulty. Thanks
> for
> your help!

Not having SB, I'm unable to provide any other suggestions about the
mechanics of making it work. Sorry.

If you write off the bad debt, I don't think your receivables report can
show he still owes $100. You wrote it off, meaning it's forgiven, no?
--
Chris Cowles
Gainesville, FL