How to deal with unpaid debt from closed client


I have a couple of clients who closed.

I need to close their invoices and:
1 - reduce my income form this sale
2 - recuperate the sales tax.

How can this be done?

Thanks for any ideas.


Hi @smokinjo,

I think,

  1. Create a Credit Note: Go to the Sales Invoice list and select the invoice you want to close. Click on the “Create Credit Note” button, which will create a credit note against the invoice. The credit note will have a negative value, which will reduce your income from the sale.

  2. Add Sales Tax: In the credit note, add the sales tax you want to recuperate by adding the relevant tax code to the item line. This will add the sales tax back to your account.

  3. Submit and Close: Once you have added the credit note and sales tax, submit the credit note and then close it. This will close the original invoice and adjust your accounts accordingly.

Note: Make sure first take a backup and also check with the local server (Test server).

Thank You!

HI there. Thanks for the idea.

When I created the credit note, it was linked to the original invoice, BUT, the original invoice was not marked paid. Does it need to be applied or is the original invoice already “nullified” and invoice and taxes are reversed?

Please Just Check.

the original invoice, once you create a credit note linked to the original invoice, the original invoice will be automatically marked as “paid” and the taxes will be reversed. This means that you don’t need to manually mark the original invoice as paid. However, you can check the invoice status to confirm that it has been marked as paid and that the taxes have been reversed.

Thank You!

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