---
title: "How to process Bad Debts"
canonical: "https://kb.myframeworks.com.au/space/CO/30530728/How%20to%20process%20Bad%20Debts"
format: markdown
---
> ℹ️ You cannot process a Bad Debt Write Off if:   
> ℹ️ a. Customer has no Balance  
> ℹ️ b. Customer has existing Suspended Sales  
> ℹ️ c. Customer has future balance  
> ℹ️ d. Customer has unallocated payment

| **Task** |
| --- |
| Using the > Macro (inline-media-image)

 button expand **Receivables** - **Transaction Processing** then click **Bad Debt Write Off**. |
| Limit the search results by selecting a specific **Customer No.** or use the > Macro (inline-media-image)

 button to search, and/or use the **Search** bar. Leave the **Customer No** and **Search** bar blank to return all outstanding customer balances. |
| Click the > Macro (inline-media-image)

 button to list all customers fitting your search criteria with outstanding balances. |
| Click on the **Customer No** hyperlink to view details of the overdue amount on the right side of the screen.<br>> ⚠️ If a Customer balance has already been written off you will receive an error message on screen - "Bad debt has already been written off for the Customer." All fields will be un-editable. |
| Update the **GST Amount **to be split out from balance, enter the **GL Account** to write off balance to, and **BAS Code** (or or use the search > Macro (inline-media-image)

 button) then click > Macro (inline-media-image) |
| Status of Customer in Customer Maintenance will now show as **Z - Bad Debt Written Off** |

For further detailed information, refer to: [SKB](https://sterlandsupport.atlassian.net/wiki/pages/createpage.action?spaceKey=SKBHP&title=SKB).