1. Create a Flat Rate Product/Billing Item:
    1. In Records, click Products and Billing Items
    2. Click New Flat Rate Billing Item
    3. In the Description field, enter Bad Debt Write Off
    4. Select the GL Distribution Tab of the Product/Billing Item
    5. Enter the Expense account as the Credit Account
    6. Enter the A/R summary (or suspense account) as the Debit Account (This option is only necessary if using a multi-AR system)
    7. Click Save and Close
  2. Add a credit for the client record using the Bad Debt Write Off Product/Billing Item
  3. Apply the credit to the invoice to write off
  4. Click Save and Close
     


Note: To verify that the distribution of the bad debt expense is correct, after saving the credit memo, click the Dr/Cr Entries button on the GL Distribution tab