An explanation of how to handle bad debts. Bad debts are amounts you don’t expect to collect from customers. You can handle them in Qoyod through a manual accounting entry.
Steps
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From the sidebar menu
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Go to Accounting
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Select Manual Journal Entries
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Add a new entry
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On the debit side (Debit):
Select the Bad Debt Expense account
If it doesn’t exist, create a new account under Expenses named “Bad Debt” or “Bad Debt Loss”
Enter the debt amount (for example, 1000 SAR) -
On the credit side (Credit):
Select the Receivables account
And specify the customer who did not pay
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Save the entry
After saving
The amount decreases from the customer’s balance
And appears as bad debt expense in reports
If the customer pays later
Record a reverse entry to return the amount as bad debt recovery income
Important notes
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Make sure to review the customer’s balance before recording the entry
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Keep a copy of any document proving the debt could not be collected
