In some cases, you might determine that a client isn’t going to pay you for an invoice, and you will have to write it off. The accounting process for this is known as recording a bad debt. This means the invoice amount will be removed from your unpaid accounts and appear as lost income.

All written-off invoices will appear in the bad debt section on your Profit & loss report.

To write off an invoice, find the invoice on the Invoices page, select Write-off invoice from the invoice menu, and confirm.

In a similar way, you can also write off the outstanding amount on an invoice for which you have received a partial payment.

First find the invoice on the Invoices page. Then from the invoice menu select Write-off outstanding amount.

Once you confirm the write-off, the invoice status will be updated to paid, and you can find it under the paid tab.