Outstanding Customer Credit - Has Closed the Business

AHJS

Hello

 

We have a customer which an outstanding account credit of $72.53 since 21/12/2020

 

The have closed the business, how do we wipe the credit?

 

Thanks so much

AJHS

Steven_M

Hi @AHJS 

 

I would recommend speaking with your accounting advisor to the best course of action. However, the way I would clear those credits would be by processing them through a holding account then you can journal that to another account if required. The full process I would use is below:

1. Navigate to Accounts>>Accounts Lists.
2. Select New.
3. Give the account a number, name and set the account type to be Bank.
4. Once that account has been created, navigate to Sales>>Sales Register>>Returns & Credits.
5. Highlight the relevant credit.
6. Select Pay Refund.
7. Within the Settle Returns & Credits window, select the Account to be that holding account and review the other details before selecting Record.

What the above process will do is place those amounts into a holding account so they can be journaled out to another account if required - Accounts>>Record Journal Entry. In addition to that, as you are processing that credit it will close the credits and thus remove those outstanding credits.