Reverse a Bad Debt Previously Written Off

This article outlines the steps where you have previously written off a bad debt and you want to write that bad debt back on.

Bad debts written off are represented by the following transactions: 

• AF - Adjustment Fees 
• AD - Adjustment Disbursements 
• AG - Adjustment GST 
• AI - Adjustments Interest

Step-by-step guide

To write back on a bad debt, this is done using the Debtor Journal Input (Transactions > Debtor Journal Input). 

1. Enter the transaction Date i.e. the Date of the Original Invoice. 
2. Enter/Select the Matter Number. 
3. In the Transaction Type field, select Bad Debts Written Off. 
4. In the Reference No. field, type in the bill number e.g. BI0000438. 
5. Enter a relevant transaction description in the Narrative field e.g. write back on previously written off bad debt. 
6. In the Apply to Invoice field, type in the invoice number e.g. BI0000438.; you will then receive the following message:
   
   
   
7. Select Yes. You will then be presented with the following screen. Ensure the Invoice Number is correct and the Invoice Date can be changed to the date of the original invoice number. Select OK.
   
   
   
8. Enter the total amount to be written back on e.g. $1,312.86 as a positive amount. You will then receive the following message. Select No.
   
   
   
9. Select Add Transaction
   
   
   
10. The allocation override screen will then appear and you will need to enter in the breakdown between, Fees, Disbursements and GST as negative amounts. Select OK.
    
    
    
11. Which will allocate as follows at the bottom half of the screen
    
    
    
12. Select OK or Apply at the bottom right of the screen to accept the debtor journal. You will be asked whether you want to print an adjustment notice, Select No (unless you wish to print the adjustment notice). 

The invoice has now been written back on to the matter as an outstanding debtor.