Handle a Clients' Bad Debt

Bianca Amorim

Updated 02 June 2026 18:15

If you wish to add a bad debt to a partially paid invoice, refer to option 2.

Option 1 is recommended if you wish to recover your taxes on a bad debt.

Option 1: Crediting an Invoice

By reversing your invoice, you can easily remove a bad debt.

If your invoices remain unpaid, you must manually make the payment via the Accounting > Payment.

Note: This amount will be deducted from your sales figure, but you can recover the taxes immediately.

Option 2: Including a “Bad Credit” Payment Method and Adjusting Your Tax Claim

Include a bad credit payment method to which you can associate the right general ledger code with a new bank number. Click on the left menu Sales > Configurations > Payment Methods > +Add.

Add Description, Abbreviation (optional), GL (consult with your accountant). Then click on Save. When you go to Point of Sale and invoice an estimate you will see a new payment method - "BAD CREDIT".

Note: Do not forget to advise your accountant because you will then have to make the manual adjustments to claim the taxes on the unpaid amount and manually enter it into your general ledger module.