To record a bad debt in AccountsPortal, perform the following steps:
In our example, we will assume that you originally issued an invoice for £100, and want to record a bad debt of £15
1. Create a new Credit Note, with the line item allocated to the Bad Debts account. The amount of the credit note should be equal to the amount of the bad debt (i.e. £15). Please note that the Bad Debts account must have the 'Display in Sales' option enabled in the Chart of Accounts, otherwise you will not be able to select it when creating the credit note.
2. Once the credit note has been created, select the 'More Options' drop down list and select the 'Allocate' option. You should then allocate the full amount (i.e. £15) of the credit note against the original invoice.