Other Questions

We're glad to see you here in the Community forum, D_RushPrint. I'm here to help you record the job your client doesn't want to pay in QuickBooks Online (QBO).

When we deliver a service to our customers, and they don't want to pay, we can record it as a bad debt in QBO. Then, generate a credit note for the bad debt and link it to the invoice under the customer. 

If you don't have an existing invoice for the unpaid job designated to the said customer, I recommend creating one before proceeding. It ensures that we can record the data accurately in QBO.

Yet, let's proceed with creating a bad debt expense account if there's already an existing invoice. This account will be used to designate the transaction.

Here's how:

1. Go to the Gear icon and choose Chart of accounts.
2. Click New. 
3. On the Account type dropdown, select Expenses. 
4. From the Detail Type dropdown, choose Bad debts.
5. The system will automatically name this account as Bad debts.
6. Once done, hit Save and Close.

After that, we can now create a bad debt item.

1. Go to the Gear icon and click Product & services.
2. Select New and choose Non-stock from the Product/Service information page.
3. Enter Bad debts as the item's name in the Name field.
4. On the Income account dropdown, select the Bad debts expense account.
5. Once done, hit Save and Close.

Then, let's create a credit note for the bad debt.

1. Go to the + New menu and click Credit note.
2. Choose your customer from the Customer dropdown.
3. On the Product/Service column, select Bad debts.
4. From the Amount dropdown, enter the total amount of the expense plus the VAT amount.
5. Type Bad Debt on the Message displayed in credit note section.
6. Hit Save and close.

Finally, apply the credit note to the invoice to write off the amount.

1. Go back to the + New and choose Receive payment.
2. Select the customer from the Customer dropdown.
3. Tick the invoice linked to the job that your customer doesn't want to pay.
4. From the Credits section, choose the credit note that you've created.
5. Once done, Save and close.

You can also run a report specific to your bad debts data. For more information, refer to this article: Bad debts report.

In addition, you may check this article if you need to void or delete invoices, expenses, and other transactions in QuickBooks: Void or delete transactions in QuickBooks Online.

Don't hesitate to reply to this thread if you have additional QuickBooks-related queries. We'll be in touch.