How do I Cancel Unpaid Due?

[Rick Parrow]

I file my taxes on a CASH basis. So the write-off "bad debt" won't work for me here, I know.

I issued an invoice for $7000 but the customer agreed to pay (and paid) only $3000.

I want to correct the invoice (which has already been printed and mailed 2 months ago) so that it reflects correct the facts that:
1. I don't expect the customer to pay $7000 anymore.
2. The customer paid only $3000.
3. The customer didn't pay $7000.

The problem is that when when I use the "Apply Credits" or "Apply Discount" feature, the "corrected" invoice shows as if this difficult customer paid $7000! Which he can later present as if he really paid $7000 (when in fact he didn't).

How do I correct the invoice such that it accurately reflects the situation? Remember: I cannot delete the invoice and create a new one instead, since it was already printed and mailed. Also, I file my taxes using the CASH basis, not accrual.

Thanks,
Rick

[suzannemead]

You can set up a Sales Adjustment account. Either go to the the original invoice and use an item that posts to that account - a discount type of item - and enter the reduction. Or, on the Receive Payments screen you can use the Discounts/Credits button and choose that account. Doing it that way will leave the invoice as it originlly was. Either way will work.

[Rick Parrow]

Originally Posted by suzannemead

You can set up a Sales Adjustment account. Either go to the the original invoice and use an item that posts to that account - a discount type of item - and enter the reduction. Or, on the Receive Payments screen you can use the Discounts/Credits button and choose that account. Doing it that way will leave the invoice as it originlly was. Either way will work.

Thank you, Suzanne. Once again you are so helpful.

However, unfortunately your method doesn't accomplish what I wanted: The invoice does say now "PAID" (that diagonal "stamp"). But under the "Total" line, there is a line called "Payments/Credits" and it states $7,000.

Yes, this is correct that if one combines Payments and Credits, it would total $7,000. But now the customer (not one of the most honest customers if may add), can present this as if he paid $7,000. There is nothing in the PRINTED invoice that separates Payments from Credits.

Is there a way to change this? Perhaps customize the printout? Is it possible to customize the invoice such that it shows Payments on one line and Credits on another line?

Thanks,
Rick

[suzannemead]

Yes, if you add a line item to the invoice giving a discount as I suggested as an option. That will change what is due and the $7000. will not be a factor. Since the invoice will be for less then you don't have to bother doing anything with credits on the Receive Payments screen.
You could always issue a credit memo if you want the reduction in price separately stated, but I think I would just make the change on the invoice itself.