Sometimes you might have an invoice that's unlikely to be paid. In that case, you should treat it as "bad debt" in reports by marking it as uncollectible.
When you mark the invoice as uncollectible, it won’t be removed from the system but will be automatically excluded from all lists. The invoicing sequence will not be altered.
Example: Let’s say your customer had placed an order and you had manually raised an invoice for it. Later for some reason she decides to cancel the order and hasn’t yet paid for it. Now you have to
mark as uncollectible, to keep it for your future reference, which will be of immense help during audits.
Marking as uncollectible will also help you track down customers who make too many cancellations.
To mark an invoice as uncollectible, just follow these steps:
- Go to the invoices page, and filter or otherwise find the one that won't be paid.
- Click on the invoice and you’ll see a nice representation of the invoice that was sent to your customer.
- Click on the
...dropdown at the top right of the invoice, and select
Mark as uncollectible.
Don’t see the mark as uncollectible option? That's good! It means your invoice has been paid. 🤑