To write off a customer invoice as a bad debt, first, ensure that the Bad Debts nominal account is flagged for viewing within your Sales transactions screens:

• Go to Setup > Show/ Hide Nominal Accounts:
• Select Bad Debts from the drop-down list
• Tick to flag the account for viewing in Sales (if not already done so)
• Click Update
  
  

• Go to Sales > Batch Entry:

• Enter relevant references, date and choose the customer (also enter a narrative if required)

• Enter the VAT-inclusive amount of the invoice as a MINUS and choose the VAT rate that was applied to the original invoice.

• Post entry

• Choose Bad Debts as the Nominal Account