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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Bad Debts process in B...
Small and medium business | Business Central, N...
Suggested Answer

Bad Debts process in Business Central

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Posted on by CU04081252-0 86
Hi Experts,
 
How Bad debts are recorded in the Business Central? What is the process and how same can be applied against invoices. Please let me know the full process.
 
Thanks in advance.
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Dynamics 365 Business Central
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  • Suggested answer
    AndrewThomas81 Profile Picture
    AndrewThomas81 532 on at
    There is no bad debt process.
     
    You can create dispute statues and add these to customer ledger entries for traceability.
     
    To write off a bad debt the practice is to raise a credit memo to your G/L Account for bad debt expense and apply that to all bad customer ledger entries
     
  • Suggested answer
    RockwithNav Profile Picture
    RockwithNav 9,028 Super User 2026 Season 1 on at

    Hey mate,

    What AndrewThomas81  recommended is one option to handle bad debts. Either way, we will need to write them off. Another approach could be to use a specific expense GL account where you want to record the adjustment. You can use the Cash Receipt Journal, select the customer and the corresponding customer number, and balance it against that expense GL account. Make sure to apply the invoices correctly.



     

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