Create a Bad Debt Write Off nominal code

If you're using the Sage default nominal structure you should already have a nominal code for Bad Debt Write Off, 8100 by default. If you've deleted this, or created your own nominal structure and not created a Bad Debt Write Off nominal code, you must create one before proceeding.

1. Click Nominal codes then click New or New/edit.
2. Complete the Nominal Record as follows:
   
   

   N/C	Enter the nominal code number you want to create. This should be within the overheads section of the profit and loss. If you're using the Sage default nominal structure, the new nominal code will be in the range of 8100 - 8199.
   Name	Enter the name for the new nominal record, for example Bad Debt Write Off.

3. Click Save then click Close.

You should now check your Chart of Accounts to ensure that the nominal code you've created is included within the overheads section of the profit and loss report.

 

Write off a sales invoice

In the following example you invoiced Brown Ltd for 120.00 , inc VAT at 20% . The debt has remained unpaid and is to be written off.

1. Click Customers then click Batch credit.
2. Complete the Batch Customer Credit window as follows: The tax code, net and VAT amounts must be the same as the invoice being written off.

TIP: If the invoice you are writing off has multiple VAT rates, you should split the transaction using one line for each VAT rate as appropriate.

A/C	Date	Credit No	N/C	Details	Net	T/C	VAT
Brown	Write off Date	BadDbt	8100	Write Off	100.00	T1	20.00

1. Click Save then click Close.

You should now allocate the credit to the invoice to clear the outstanding debt.

If you want to reverse any written off invoices, you can reinstate the invoice by posting an invoice with the same details as the credit note.

 

[BCB:19:UK - Sales message :ECB]