Outstanding Customer Credit - Has Closed the Business
Hello
We have a customer which an outstanding account credit of $72.53 since 21/12/2020
The have closed the business, how do we wipe the credit?
Thanks so much
AJHS
Hi AHJS
I would recommend speaking with your accounting advisor to the best course of action. However, the way I would clear those credits would be by processing them through a holding account then you can journal that to another account if required. The full process I would use is below:
- Navigate to Accounts>>Accounts Lists.
- Select New.
- Give the account a number, name and set the account type to be Bank.
- Once that account has been created, navigate to Sales>>Sales Register>>Returns & Credits.
- Highlight the relevant credit.
- Select Pay Refund.
- Within the Settle Returns & Credits window, select the Account to be that holding account and review the other details before selecting Record.
What the above process will do is place those amounts into a holding account so they can be journaled out to another account if required - Accounts>>Record Journal Entry. In addition to that, as you are processing that credit it will close the credits and thus remove those outstanding credits.
