Short Answer: Adjust it off in Receipt Allocate.
Explanation: This option is used to remove open receivables from a customer’s account without recording a receipt of payment from the customer. For example, writing off a receivable for bad debt.
Allocate: Select the customer you wish to make the adjustment. Select the “Reason” from the pre-determined list next to the appropriate transaction. Each of these reasons can be set to adjust the balance to a default ledger account under Tools-Company Setup-General Ledger Posting Defaults.
Do not check the box in front of the invoice. It will be checked automatically once you select your reason. The payment field will remain zero and the balance will be removed and applied to the default general ledger account.
Available Reasons:
- Bad Debt
- Bank Service Charge
- Cash Short or Over
- Credit Card Fee
- Customer Refund
- Customer Terms Discount