"harrelsonesq" wrote:
- quote -

Susan,

It wouldn't be deductible for most small businesses...not if you use
cash-basis accounting, which most do (certainly I do). If the cash never came
in, then the fact that it never came in can't be a deduction!

I've thought about directing an incoming payment into a dummy account, then
voiding it...but if you void it, it removes the payment from the invoice and
the invoice is then still "live." I guess I could also set up a dummy,
non-taxable income category to show a fake incoming payment...yes, that's
probably the best way to deal with it, actually, considering that Microsoft
isn't likely to fix the bug any time soon. (This is what the guys at Netscape
used to call a "bug-like feature.")

Thanks, Susan,

Peter

I would transfer the balance into an account called "uncollectible debt," or
something like that. I am not an accountant, but I believe the uncollectible
balance may be deductible, so you probably wouldn't want to be able to zero
it out.

Susan

"PeterK" <PeterK[at]discussions.microsoft.com> wrote in message
news:AFB5377E-F642-4B31-B1D3-C23101340BD4[at]microsoft.com...
- quote -

How can I partially void an invoice, or add a negative sum to an invoice.
Here's the situation.

You create an invoice and send to the client.
The client sends a lesser amount, for whatever reason: they dispute the
charge, they pay a little and then go out of business, they had already paid
a sum earlier, a sort of down payment on the work, and so on.

So, how do I deal with that now! I have a partially paid invoice...what do I
do with it? I can't enter a negative amount in there, as far as I can see,
and I can't see any other way to deal with it.

Thanks for any help you can provide!

Peter