Write off Bad Debt

Generally Bad Debt should be dealt with in your accounts software; Xero, Sage, QuickBooks etc.

If you do not use an accounts package, follow the steps below to write off the debt and clear the outstanding balance from your All Aged Debt Report in MagManager. 

Before you start make sure you have a suitable payment method and miscellaneous sales item set up, if not see the additional notes at the end.

 

Create a new misc booking 

Open the client record > Select Bookings > Select Miscellaneous > Select Add New Booking > Enter the Publication & Issue if you want the credit reflected in that issues totals or select the month from Invoice in.
Type - Select your credit note option
Description - add your description
Amount - enter as a minus figure eg -100
Save the booking

Create a (credit) invoice for the new misc booking

From the client record > Select the Financial Tab > Select the Create Invoice Tab > Check the box of the booking your want to raise the invoice for > Click Create an Invoice for 1 Booking Now.

The invoice & credit will be listed on the client Financial / Invoices tab

Allocate a payment to both the invoice &  the credit

Click on the red X under the paid column

Enter your reference details for the credit > Select your payment type > Save

Enter your reference details for the invoice > Select your payment type > Save

Now that both the credit and invoice have been paid the client's outstanding balance will no longer appear on the All Aged Debt Report and the VAT Cash Accounting will show both the debit and credit entries.

 

 

 

Additonal Notes to set up a payment method & miscellaneous Item

Set up a payment Type to allocate to the Bad Debt

Go to the main settings page > Under Accounts > Select Payment Methods > Select New Payment Method > Add a name > Check in Enabled < Click Save

Set up a Miscellaneous Sales Item to post your credit to

Go to the main settings page > Under Accounts > Select Miscellaneous Sales Items> Select New Item > Add a name > Check Include in Publications Total > Check in Enabled < Click Save

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