About managing old debts in accounts payable

Sometimes there are situations where a subcontract or invoice will never be fully paid. To clear the debt from the books, you can post a credit invoice against a specific invoice to the Bad Debt Expense account. Sage 100 Contractor then changes the status of both invoices to 4-Paid.

If you enter a credit invoice but do not reference it against a specific invoice, apply the credit in the 4-3 Vendor Payments window. Then print a $0 cheque to blank paper using a cheque number outside the normal range of cheque numbers.