Unpaid Purchase

You may find yourself in a situation where you will not be paying the remainder of a purchase, or a whole purchase. You will need to write this off as bad debt.

Creating the bad debt code

The first step is to set up a nominal code called Bad Debt by going to Settings > Purchase Codes > ‘Add Purchase Code’ at the bottom of the page.

Purchases that will never be paid

Firstly, navigate to Purchases > Open the purchase receipt > Click Copy in the top navigation > Select Purchase in the popup.

You should now have an exact copy of the purchase. Simply change the purchase code to the Bad Debt code you just created.

Remember to put a minus in front of the line item total in order to set it to a negative, then click Save in the top right of the screen, leaving the purchase unpaid.

Please return to the original purchase > Payments at the bottom of the page > Apply Credit > Select the credit note you just created > Press Apply.

Writing a remainder of a purchase off

If you are not going to pay the remainder of a purchase, go to Purchases > Open the purchase receipt > Add Payment within the Payments section at the bottom right of the screen

You need to amend the figure here so that it matches the total amount you have paid the supplier, then return to Purchases > Create > Select the supplier.

Simply click Add Line Item using the Bad Debt code and set the line item total to the remainder on the original purchase. Please leave this unpaid.

You may also want to leave a short reference in the Description box e.g. ‘Writing off £50 on purchase #XXX’.

Finally, open the original purchase > Payments at the bottom of the page > Apply Credit > Select the credit note you just created > Press Apply.

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