To write off bad debt
iMIS allows you to write off a bad debt, an uncollectible item you do not expect to see fulfilled. In order to write off a bad debt, you must first set up a product that corresponds to the bad debt expense on the Set up products window.
- From AR/Cash, select Set up tables > Products to open the Set up products window.
- Click New.
- Enter SALES in the Product Type field.
- Enter a code for the bad debt item. BADDEBT is used in this example.
- Enter a title in the Title field. Bad Debt Expense is used in this example.
- If desired, enter a short description in the Des. field.
- Leave the Regular Price and Non-Member Price at zero so that you can enter variable balances.
- (Optional) Place the cursor in the GL Account field and enter or change the GL account number. for the bad debt write-off. If the Allow GL Account Edit for Sales Transactions option is not enabled (from AR/Cash, select Set up module), the GL Account field is display-only and the GL account number cannot be added or changed.
- Click Save. You can now reference the item (in this example, BADDEBT) on the Enter and edit credit memos window and properly track this expense account.

Set up products window showing BADDEBT product code