Writing off uncollectible invoices (bad debt)
Write off all or part of an open invoice to a bad-debt or write-off account, keeping the invoice and its history, with reversal if the customer later pays.
- Plans
- Core and above
- Availability
- Rolling out in prelaunch
- For
- Owners, Bookkeepers, Accountants
- In KontoCore
Sales → Invoices → (invoice) → Write off
Built – unverified (prelaunch). Human certification pending.
In plain English
When you won’t collect an invoice, a write-off removes the uncollectible amount from what customers owe you and records it as a loss.
What this does
A write-off reduces the open invoice balance and accounts receivable and debits the account you choose (or the configured default write-off account).
Partial write-offs leave the rest open. The invoice is never deleted; it shows the write-off in its history.
Before you start
- Create or confirm a Bad debt expense or write-off account.
- Agree your write-off policy with your accountant.
How to
Write off
- 1Open the invoice and choose Write off.
- 2Enter the amount (up to the open balance) and date.
- 3Choose the write-off account or accept the default.
- 4Add a reason and post.
Accountant review
- Tax treatment of bad debts depends on your accounting method and jurisdiction. KontoCore does not determine deductibility — confirm with your accountant.
- Organizations using an allowance method may choose an allowance account instead of expense.
Statuses and lifecycle
| Status | Meaning |
|---|---|
| Partially written off | Some balance remains open. |
| Written off | No open balance remains. |
| Reversed | Write-off undone; balance reopened. |
Corrections, voids, and reversals
- Reverse the write-off to restore the open balance, for example if the customer later pays.
- Sales tax on written-off invoices is not adjusted automatically; ask your accountant.
Audit trail
- Every create, post, void, and reversal records the user, time, and reason, and links to the source record.
Availability and provider notes
- Built – unverified: this workflow exists in the prelaunch product but has not yet completed human certification. Review results before relying on them.
- No external provider is required.
Permissions
- Owners, administrators, and users with bookkeeping permission can create and post. View-only users can read but not change records.
- Organizations with approvals can require approval for write-offs.
What happens in your books
Writing off $400:
| Account | Debit | Credit |
|---|---|---|
| Bad Debt Expense (selected account) | 400.00 | |
| Accounts Receivable | 400.00 |
Common mistakes
- Voiding or deleting the invoice instead, which loses the history of the sale.
- Writing off an amount that was actually paid but not matched.
Troubleshooting
Write off not offered
The invoice has no open balance or is a draft.
Related articles
Estimates and invoicesSend estimates, convert them to invoices, set terms and tax, and understand what an invoice does in your books.Customer statementsProduce a customer statement for a date range or as-of date showing opening balance, invoices, credits, payments, refunds, write-offs, and ending balance.Customer payments and depositsReceive customer payments against one or more invoices, handle partial and over-payments, group them into bank deposits, and match deposits to bank lines.Chart of accountsOrganize accounts by type, add or rename accounts, use sub-accounts, and deactivate accounts safely.
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Last reviewed October 6, 2026