How To Record a Bad Debt Write-Off
31 steps
2 minutes
1
Navigate to Brokerage Engine.
2
Click the "Accounting" tab to navigate to the interface.
Review Customer Profile
3
Click the "Sales" tab.
4
Click the "Customers" option.
5
Click the "Search Customer" field and type the name of the Agent.
6
Click the name of the Agent.
7
The Customer profile shows an overdue open balance of $20.
Create Adjusting Journal Entry
8
Click the "Quick Actions" menu.
9
Select the "Journal Entry" option.
10
The Journal Entry date will default to today's date. It can be adjusted using the small calendar icon.
The Journal Entry will be dated today to reflect the adjustment in the current month, while the original invoice will remain recorded in its original period. If the Bad Debt Expense needs to be recognize on the same period as the Income, then the Journal Entry date needs to be adjusted to match the date of the Invoice.
11
Rename the Journal Number accordingly.
12
Using the dropdown menu, select the Bad Debt Expense account.
13
Using the Debit column, type the whole amount of the Invoice.
14
From the dropdown menu, select the Class tied to the Agent.
15
Using the dropdown menu, select the Accounts Receivable account tied to the Invoice.
16
Using the Credit column, type the whole amount of the Invoice.
17
Using the dropdown menu, select the Customer Name for the Agent.
18
From the dropdown menu, select the Class tied to the Agent.
19
Click "Save"
20
Click "OK"
Link the Journal Entry to the Invoice
21
Click the "Sales" tab.
22
Click the "Customers" option.
23
Click the "Search Customer" field and type the name of the Agent.
24
Click on the Name of the Agent.
25
The Open balance will automatically adjust to reflect the reduction in invoices.
26
Click the "Transactions" tab.
27
Once you've located the Invoice to Write Off, click the '+' button to proceed.
28
On the Credits section of the Invoice Payment Detail page, select the checkbox of the Journal Entry to Write Off Bad Debt.
29
Click "Save"
30
Click "OK"
31
The Invoice will be marked as Paid.
If the Invoice is also agent-facing, the Paid status will sync within the hour.
How To Record a Bad Debt Write-Off
31 steps
2 minutes
1
Navigate to Brokerage Engine.
2
Click the "Accounting" tab to navigate to the interface.
Review Customer Profile
3
Click the "Sales" tab.
4
Click the "Customers" option.
5
Click the "Search Customer" field and type the name of the Agent.
6
Click the name of the Agent.
7
The Customer profile shows an overdue open balance of $20.
Create Adjusting Journal Entry
8
Click the "Quick Actions" menu.
9
Select the "Journal Entry" option.
10
The Journal Entry date will default to today's date. It can be adjusted using the small calendar icon.
The Journal Entry will be dated today to reflect the adjustment in the current month, while the original invoice will remain recorded in its original period. If the Bad Debt Expense needs to be recognize on the same period as the Income, then the Journal Entry date needs to be adjusted to match the date of the Invoice.
11
Rename the Journal Number accordingly.
12
Using the dropdown menu, select the Bad Debt Expense account.
13
Using the Debit column, type the whole amount of the Invoice.
14
From the dropdown menu, select the Class tied to the Agent.
15
Using the dropdown menu, select the Accounts Receivable account tied to the Invoice.
16
Using the Credit column, type the whole amount of the Invoice.
17
Using the dropdown menu, select the Customer Name for the Agent.
18
From the dropdown menu, select the Class tied to the Agent.
19
Click "Save"
20
Click "OK"
Link the Journal Entry to the Invoice
21
Click the "Sales" tab.
22
Click the "Customers" option.
23
Click the "Search Customer" field and type the name of the Agent.
24
Click on the Name of the Agent.
25
The Open balance will automatically adjust to reflect the reduction in invoices.
26
Click the "Transactions" tab.
27
Once you've located the Invoice to Write Off, click the '+' button to proceed.
28
On the Credits section of the Invoice Payment Detail page, select the checkbox of the Journal Entry to Write Off Bad Debt.
29
Click "Save"
30
Click "OK"
31
The Invoice will be marked as Paid.
If the Invoice is also agent-facing, the Paid status will sync within the hour.
