TABLE OF CONTENTS

• Summary
• End Result
• Method
• Considerations
  
  

Summary

When a debtor does not pay off their account and you need to write off the balance as you do not ever expect to receive payment.

End Result

Debtor will have a $0 Balance and the amount in the Bad Debt GL will have increased.

Method

1. Firstly you may also need to create a 'Bad Debt' GL Code. This is where the Bad Debt will be recorded. 
2. Create a Debtor Charges entry; selecting the Debtor ID and the relevant fee code and entering the amount as a credit. For example if the total amount owed is $5000, enter in the amount as -$5000 

By doing this, the debtor disappears from the outstanding list, and your bad debt's account increases.

Considerations

You will need to consider the likeliness of being able to recover the debt, including if the debtor may return or any students (Future or Current) that may be linked to the debtor.