Hello all, I have a sales invoice which is not going to be paid (don't ask). My accountant tells me that this should be written off as a bad debt, which seems reasonable. Referring to the LSMB Manual (v1.2) Section B.2 says: If a debt needs to be written off, one can either use the allowance method (by writing it against the contra asset account of "Allowance for Bad Debts") or using the direct writeoff method where it is posted as an expense A direct method sounds like a smart approach, and since my CoA is based on what was the default set, I have a "Bad Debts" expense account (thus far unused). However, this account is not linked and if I settle the invoice via Cash -> Receipt the funds will have to pass through one of my asset accounts, which seems wrong. The obvious solution to me is to enable the "Bad Debts" account to receive the funds directly by adding the AR_paid link, however since bookkeeping logic (or lack of it) is not my forte, I wondered if this is indeed the accepted way to go about it. Thanks for any light you can shed on this, Pete -- Openstrike - improving business through open source http://www.openstrike.co.uk/ or call 07092 020107
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