How do I mark an invoice as a bad debt and not have it shown as overdue?

[fatbear]

I have a customer who has failed to pay an invoice and I am now wanting to write off the invoice as a bad debt and no longer have this invoice shown as overdue. Do I modify the invoice with a "discount" equal to the invoice total?

Cancelling the invoice makes it seem that the invoice was created in error, which it was not. Somehow, I'd like to be able to track in the SquareUp dashboard income never received for work that was done. This is not a Quickbooks nor an accounting nor a recovery question. I just want to have a way that the SquareUp dashboard can show this as a bad debt.

[#2]

The only option is to cancel the invoice if your client decides not to pay, I'm afraid. @fatbear, but I totally see where you're coming from - cancelled invoices don't specify which ones are bad debit. 

Making sure to resurface this limitation to our Invoices Product Team on the back end with your added suggestion. Thanks for letting us know why you need this feature - It helps the prioritization of a feature request 

[osueyedoc]

I'm a small health clinic and use Square to collect copayments before billing insurance.  I bill insurance, receive payment, then write off the rest because of the contract with insurance.   When I try to adjust the invoice so that I write off the remaining balance, I select it as a discount but it won't let me "mark as paid" or send the invoice as a zero balance because it says that it must be between $1-$50,000.  What do I do?

[kellyj]

@osueyedoc

Keeping the original amount of the purchase on the invoice, you can mark the invoice as paid and choose "other payment method" noting this is a charge off for you. 

Since we're not full accounting software, this is just allowing you to finalize a balance/invoice; not specifically address the charge off.  We can definitely pass this to our Product Team for future changes.

[coastalballoon]

Square is payment process, not accounting software. Really, talk to your bookkeeper or CPA to help you setup an easy method to track your write-offs.

[cmctaxguy]

How do I write off invoices to bad debt without cancelling? Work was performed but never paid.

[nika]

Welcome to the Seller Community @cmctaxguy! 

I moved your question over to this thread so that you can take a look at kellyj's answer above. I would just reiterate that when it comes to writing off invoices, it's always good to talk to a tax professional!

[cmctaxguy]

Thank you Nika. 

Seeing that the invoice can only be cancelled I know what I should do.

[JustinC]

The only option is to cancel the invoice if your client decides not to pay, I'm afraid. @fatbear, but I totally see where you're coming from - cancelled invoices don't specify which ones are bad debit. 

Making sure to resurface this limitation to our Invoices Product Team on the back end with your added suggestion. Thanks for letting us know why you need this feature - It helps the prioritization of a feature request 

[PBB]

Trying to resolve an outstanding invoice that will not be paid - created a 100% discount for bad debt and I get an error when editing the invoice that the invoice minimum is $1 and the invoice is now zero so I cannot save.  My intent is to assure that the sale is not in the sales report for my sales taxes.  Any suggestions - I already archived the invoice.  Thanks

[JustinC]

It would be ideal if Square offered an option to mark invoices as bad debt. Unfortunately you'll just have to cancel the invoice. @PBB