How to write off a bad debt in Xero

In this video I show you how to clear a bad debt in Xero

[HowToSandAFloor]

Thanks for the video. One thing im concerned about is that adding VAT expense account would reduce the vat you have paid, where as putting it under vat income would credit the vat income account, thereby reducing that account instead. I understand the net result is the same but for the purposes of accounting is this important?

Btw I’m not an accountant so I could be talking rubbish

[ewakoziel]

This was very helpful. And how do we post a provision for a doubtful debt on Xero?

[toniluong]

Hi Marion, could you just apply a credit note against the invoice? And use the bad debt account with STD VAT (if applicable) for cash scheme VAT? Thanks

[pieterjordaan]

Video very simple and relevant but with one major flaw: When the credit note is approved with bad debts it makes the invoice zero and add the invoice amount to bad debts but it does not remove the invoice value from the sales general ledger. This will have a significant impact on the trial balance as your sales figure and VAT/GST figure would also be overstated. Only way to then correct is to void invoice which is a bit of a concern relating to audit trail. Am I missing something?

[marmax]

great videos stright forward, thanks, if you have done any on setting and recording directors didvidend and also directors milage claims without payrol could you give me the links please

[kadeshbailey]

Oh wow, I've been looking for this, thanks!

[arifulsohag]

can you please discuss balance sheet affect of bad debt ?

[vivaaccessequipmentchannel]

Thank you so much, very clear and helpful.

[nadiariaz]

I just want to ask why you used No VAt on bad debts. To my knowledge VAT is recoverable on bad debts eg Dr Bad debt,
Dr Vat Credit debtors control account. Also is writing off bad debts treated differently in Xero for Accrual scheme and cash scheme?

[mohamedhameed]

Your videos are very useful for my profession. So could you please post videos contionusly