How to write off an invoice

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Comments

  • Lisa557Lisa557 Member Posts: 2

    How do we EASILY CANCEL an invoice because client changed mind and does not want the service at this time? Service was not delivered and there is no tax involved. We just want to cancel the invoice.

    edited December 16, 2020
  • sanjeevjsanjeevj Member Posts: 24

    A client has defaulted payment and has no intention to pay for the invoice issued. How do I record this against the invoice in Wave?

    edited December 29, 2020
  • mrsmrs Member Posts: 3

    I understood the purpose of clearing account meant for writing off bad debt - but I didn't understand the purpose of creating bad debt expense account and adding bad expense. What is the practical scenario and how it impacts accounting best practices? Why can't we modify actual expenses that are already incurred instead of creating new expense items?

    Please explain.

    edited December 23, 2020
  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Hey @Lisa557 , the steps outlined in this article on page 1 explain how to do so. Alternatively you can always delete your invoice but it sounds like that's not what you're looking to do as the services were rendered.

    Hi @mrs , if you've already rendered your services but your client will no longer be paying you, you want a history of this in your books as it's technically a loss that you're incurring.

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Hey @sanjeevj , I've merged your comment into this thread where you can take a look at our Help Center article on how to write-off an invoice. Check it out in the first comment on page 1.

  • ShelbyShelby Member Posts: 2

    Hello everyone, I saw a question above that I didn't see an answer to.

    Basically, a client asked me to invoice them a retainer fee a few weeks ago, but they still have not made any payment - services have not been rendered yet. Basically, the work job is just being pushed back by a month or so.

    I want to revert the invoice to an estimate until the contract is signed and the payment is received, but I'm not sure how to do so.

    Thank you in advance!

  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    Hey @Shelby !

    I'm afraid that you cannot revert an invoice back to an estimate. If you'd like, you can create a new estimate with the invoice details, and delete the invoice in question. I hope this helps!

  • Stochastic_TradersStochastic_Traders Member Posts: 1

    This was very helpful. Thank you!

    P.s. Please don't drop your users outside the U.S.

    Regards from Aruba! :smile:

  • TerrylTerryl Member Posts: 2

    I would like to know how to void an invoice. We have had many cancellations due to covid.
    We refunded the the invoice and it is not a bad debt to be written off, but an invoice that needs to be closed, but it is now showing a balance. How do I fix this.

  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    Hey there @Terryl !

    After taking a closer look on the backend, I can see that one of our support agents assisted you with this via live chat. If you have any other question, feel free to reach back out to us! :smile:

  • TerrylTerryl Member Posts: 2

    Thank you for replying but there is a bit of a difference with voiding an invoice and making it a bad debt.....

  • KristenVKristenV Member Posts: 121 admin

    Hi @Terryl , while the article walks you through the process by using "Bad Debt" as the default descriptor, you can choose to name the clearing accounts something that is more in line with your situation if "Bad Debt" doesn't suit it.

  • LynnSLynnS Member Posts: 1

    Hello,
    I did as the article recommended and cleared my unpaid invoices. Now I'm wondering how I can view what's in my "Bad Debt Expense account"?

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