QBO Monday Minute - Accountant Tools Mini Series Part 1 of 4 - Writing off Invoices in QBOA



Comments (6)

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Be careful with this method

QBO writes off the invoices by directly editing the invoice. Consequently the change will occur on the invoice date and you may be changing a prior reporting period. If you have distributed reports for that period, they will no longer match what is in QBO.

Mike Wilson 256 days ago

Thanks for the comment

Our article was based on 'how to' use the tool, not 'if you' should use the tool. Obviously the accounting considerations need to be taken into account as a part of electing to use this QBO feature. Since 90+% of our users are ProAdvisors, Accountants or Bookkeepers (rather than end product users) we believe that each of those professionals should be able to determine the appropriateness or inappropriateness of using the tool. Still the same your comments have a valuable place in supplementing this feature.


insightfulaccountant.com 256 days ago

Be aware!! Writing off invoices in QBO

While this tool looks really handy, it is a bookkeeping nightmare.

If you look behind the scenes, you will see that a 'discount' pointing to Bad Debt is applied to the actual invoice.

Not only is this totally WRONG!!!! (who would ever write off an invoice as of the original date. . .??), it changes history.

I started to use this tool with a client that had hundreds of old invoices dating back many years. Thank God (literally - I did thank God!), when I didn't see any option to enter an 'as of date', I didn't click the button, but tested this out with one invoice and, then, ran the reports to see how the accounts were affected.

Granted, as described, this tool affects the final accrual Balance Sheet correctly, but it, also, affects all of the Income Statements and Balance Sheets between the original invoice date and today. The actual bad debt expense is not captured in the current year, but will post to the original invoice date.

I did give Intuit this feedback directly during a QB Connect event last year and demonstrated the problem.

Do test this yourself, but I recommend only testing it with one invoice as there is no 'undo' button or restore point available.

When writing off invoices, there should be a date for the adjustment and the bad debt should be expensed in that year. (for cash basis, the income would, simply, be reversed)

Laura Dion 256 days ago

Thank you for your contributions to this article.

As with my reply to the other comment, we clearly understand your point, and consider it very valuable 'counsel' to our readers. The nature of our article was 'how to' use the tool, and did not (nor was it intended to) cover the 'if you' should use the tool. Obviously when you are shooting for a 1-minute (or less) read it is hard to include all of the potential issues when explaining use of a feature.

We recognize the potential 'prior period' implications of some write-offs using this tool, and we would hope that our readers, the vast (90%+) majority of which are ProAdvisors, Accountants, and Bookkeepers would take such accounting issues into considerations prior to making use of the tool QBOA provides. Thanks again for your valued contribution to this feature, we greatly appreciate your comments.


insightfulaccountant.com 256 days ago

Post, or not, as you see fit. . .

This is why I have a career - because Intuit and other 'professional' sites put forth wrong 'help' resources and others get in trouble while attempting to implement them.

While, I will continue to make money helping clients fix their files and procedures, I am disappointed to see that you are in that camp.

This is a BAD feature of QBO and should be removed from the platform. Showing how to use a bad feature makes no sense to me.

Respectfully submitted,
Laura D

Laura Dion 256 days ago

Valid Points, but the tool has its purposes.

It would be nice to have a few more options and be able to specify a date for the write off, I still think this tool is handy and has its place. It reminds me of the write off/discount feature in QB-Desktop.

This tool provides merely "Another way" to write off bad debit in QBO. Credit memos or journal entries are still valid options and keep the Income as Reported during the period. For those users who Delete/Void an Invoice resulting in a later question of "where did it go???" this may be a better option. There are many clients who do not require Financial Statements and understand that the Write Off took place and are happy with a the results of a true Accounts Receivable balance.


insightfulaccountant.com 255 days ago

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