Xero Software Bad Debt. How to Write Off Bad Debt in Xero Properly Sometimes there is no hope in recovering the money or the cost of recovery is too high and we need to write off a bad debt. This article will describe steps that you can take to write it off in Xero properly.
Write off a bad debt Find the invoice that you want to write off. Mon 19 Feb 2018 1157 AM. Xero will automatically create the balancing 20 entry to the VAT account.
Simplify everyday business tasks.
In the Account field select the same account code as the original invoice or select your bad debts account. We save the lodged IA form with the invoice. Xero App Partner of the Year 2016 App Partner of the Month August 2019. To record the bad debts I have processed a credit note against the original sale using the same account code.