FormerMember

AR: Small open balance on client invoice. Best accounting practice to resolve?

Posted By FormerMember

If you have a client that isn’t going to pay a small amount of an open invoice, how would you handle that?
There seems to be a couple of options.  Wondering what your opinions are.

  • 0
    The best way I have found is to unapply all previous payments to the invoice and then do a write off adjustment to the invoice for the amount that will not be paid. Then reapply all payments. The reason that I unapply the payments first is that the tax will not be written off correctly if you don't.