Managing old debts in accounts receivable

Sometimes there are situations where you have completely billed a contract, but you never receive full payment. You can post a credit invoice to the job, crediting the Bad Debt Expense account, for the uncollected amount. By not applying the credit to the open invoice, the credit invoice creates a $0 job balance but the invoice remains open. If you eventually collect the remaining contract balance, you can still post the payment to the invoice and void the credit.

At the fiscal year-end, you can close the job and remove it from the job database as long as it meets all the closing criteria.