Good Business Practice on Non-Collectable Invoices
We strongly recommend that you adjust off any invoices over 1 year old, so that:
1. The age balance reflects what is collectable
2. You recover sales tax paid on these invoices via the adjusting process
3. Invoices over a year are turned over to collection
Good business operations can support a past due amount 1.5 to 2.0 times monthly billing.
Tracking Bad Debt Customers
There are many ways to track these accounts after closing out these invoices including, but not limited to:
1. Setting credit limit to -1
2. Adding a popup note coded with "POPBAD" that lists the total amount adjusted off and shows up whenever you enter the site. In addition you can get a report list of all "POPBAD" notes.
3. Set status field for site to "BADDBT", bad debt.
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