Overview
If you use Music Monitor to record payments and manage account balances, you need a process for any occasion where you have to write off a debt that you acknowledge you will never collect.
If you do not process payments in Music Monitor but simply export billing lines to another system to invoice from, you do not need this process.
Setup
Account Codes
You need to have a Category for bad debts in your Account Codes table.
Go to Setup Files > Account Codes
Select the green + button to create a new record and call it "Bad Debts"
Miscellaneous Fees
Then you need a Fees record set up with that Account Category.
Go to Setup Files > Fees > Miscellaneous
Select the green + button to add a new record
Use the Account Category you set up in the previous step
In the Description 1 field, enter "Unpaid Amount Written Off" or a suitable alternative
Write Off Bad Debts
With the above setup in place, the process is simple.
Go to the Debtors record
Go to the Line Items tab
Select the green + button to add a new line item
Fill out the fields as follows:
Category: "Bad Debts"
Description 1: "Unpaid Amount Written Off"
Amount: [as required, a negative amount]
Description 2 and Note are optional in this case
Select Save
Finally, select Add to Existing Invoice to add the line item to the relevant invoice. If the correct amount was entered on the line item, the invoice Amount Outstanding will now be $0.
