I was trying to write off a receivable from a customer, the customer has been issued many invoices so a journal entry to write off the amount against invoices will be very time consuming, besides the customer may make payment in the future for any of the invoices.
So my problem is this, will there be a way I can use customer in journal entries to make adjustments on account of customers in the future? And if not can a tool like inventory write off be implemented for writing down specific customer balances? (credit note is out of the question)
You can use Customer credits account to do write-off. Debit some income account, credit Customer credits account. No need to specify individual invoices.
But you say customer may make payment in the future. In that case it’s not a bad debt. Bad debt is unrecoverable.
Why would it be time consuming. Your Journal would be Debit Bad Debits - Credit Accounts Receivable - Customer Invoice. Probably quicker then the time it took this two finger typist to write this.
If payment is received in the future you can either 1) reverse the above Journal and Receive Money as normal (if its within the same financial year), or 2) post receipt to a Bad Debts Recovered account
@lubos I like your Idea because it reduces the receivable, but I modified it by debiting a bad debt written off expense account and crediting the customer credit account.
There have been some occasions where debt considered as bad/unrecoverable were eventually or unexpectedly paid. If that happens I will adjust/reverse the customer credit entry by the amount received from the customer and receive money against the respective invoices?