Small amounts to be written off suppliers and customers

[Richmond91]

I have some small amounts (a few cents to a few dollars) for suppliers and customers that need to be written off.  Nothing is actually owing. 

Can you please explain how to write these amounts off?  I was going to just do an invoice and apply the credit.  However, have read different answers online / in books ie layout = miscellaneous, bad debts etc.

Also, should I be using a particular account number / layout etc?

Thanks,

[Steven_M]

Hi @Richmond91 

Generally speaking, if it's a minor amount i.e. a few cents you do have two options:

• Adjust the invoice amount by a few cents to match that of the payment thus closing it off. You can edit the exact invoice amount or add in an extra line to increase or decrease that overall amount. 
  
  
• Generate a debit note for the customer for those extra cents and then apply that to the customer's invoice to close it off.

You most likely want to speak to your accountant about the accounts, amounts, and tax codes involved in the process. However, Help Article: Customer returns, credits and refunds would be the recommended one to look at to get that process started.

In saying that, to address a couple of your points:

• The sales layout of that credit note doesn't need to be miscellaneous. We have recommended miscellaneous as you commonly wouldn't print/email that credit note, however, it can be any layout that you wish.
• Personally, I wouldn't be using the bad debt process if it's a few cents that you are writing off. This process is more for those larger amounts that are actually bad debts, generally, that you may have the option to claim back well into the future.