One of my daughter’s sponsors fell behind on paying for their advertising.
I have about six months of invoices I generated in the hope they’d come back on board. They’re now sitting in unpaid.
Technically the service was provided - ie. advertising on the website. I’m unsure from a tax and ease of management point of view whether to just delete them? Or write them off as a bad debtor?
Also, where do you turn off a recurrent sales invoice so that it no longer autogenerates each month?
If you have filed the monthly tax returns for those invoices, then you cannot simply delete it.
you can create a suitable expense account in your chart of accounts under settings and make a journal entry that would transfer the invoice total from Accounts receivable to your new expense account.
Also, if you will not be dealing with the customer again, then in the Customers tab you can edit that customer and set it as inactive.
Then you shouldn’t delete the invoices as you need to retain proof that you performed your end of the arrangement for that period.
To transfer the unpaid balance to a P&L, create an expense account called Bad Debts and use a Journal as mentioned above with a line nominating each unpaid invoice.