How to handle a bad debt

In this example a tenant leaves owing £600.00: Handling a bad debt depends on what outcome you want.

  • Do you want to leave it on the statement as a outstanding charge? If so, leave the charge as it is.
  • Do you want to clear the outstanding balance (£0.00)? The examples below deals with this option

Step 1: Create an Analysis Code

Go to Financials > Analysis Codes > Add Analysis Code 

*For Xero/QuickBooks users ensure you map this new analysis code*

Create the analysis code as shown in the image, if you use Xero/QuickBooks you need to map this to your “bad debt” expense nominal account


Step 2: Create Transaction

Go to Tenancies > Statement > Add Transaction

Add New Transaction Bad Debt

Once added it will appear as a negative transaction

Step 3: Allocate Bad Debt

This will remove the outstanding as being overdue.


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