# How to Write Off Bad Debt in QuickBooks Desktop > Write off an uncollectible invoice in QuickBooks Desktop with a bad debt expense account and a zero-dollar payment that clears the balance. - URL: https://logistify.ai/guides/quickbooks-desktop/write-off-bad-debt/ - Section: QuickBooks Desktop Guides, Receivables - Applies to: QuickBooks Desktop Enterprise, Premier, Pro, Accountant - Steps checked against: Intuit's QuickBooks Desktop help articles, updated August 2026 - Updated: 2026-10-19 **Short answer:** To write off bad debt in QuickBooks Desktop, first add an expense account such as Bad Debt at Lists > Chart of Accounts. Then go to Customers > Receive Payments, choose the customer, enter 0.00 as the payment amount, select the invoice and choose Discounts and Credits. Enter the amount to write off, pick the bad debt account as the Discount Account, and save. This works in Pro, Premier, Enterprise and Accountant. ## Before you start - Talk to your accountant before you write off a balance. Ask them which account to use and when. - Intuit's own article on clearing small balances says to consult your accounting professional before you try it. - Find the balances: go to Reports > Customers & Receivables > A/R Aging Detail to see what each customer still owes. - Know the exact amount you're writing off: the whole invoice, or what's left after a partial payment. ## Step 1: Add an expense account for bad debt 1. Go to Lists > Chart of Accounts. 2. Open the Account menu and select New. 3. Choose Expense, then select Continue. 4. Enter an Account Name, such as Bad Debt. 5. Select Save & Close. You only do this once. If your chart of accounts already has a bad debt account your accountant set up, skip this step. ## Step 2: Write off the invoice 1. Go to Customers > Receive Payments. 2. In Received From, choose the customer. 3. Enter 0.00 in the payment amount. 4. Select the invoice you're writing off. 5. Select Discounts and Credits, then open the Discount tab. 6. In Amount of Discount, enter the amount you're writing off. 7. In Discount Account, choose the bad debt account from Step 1, then select Done. 8. Select Save & Close. No money changes hands. The discount clears the open balance on the invoice from Accounts Receivable and records the amount in your bad debt account. ## Step 3: Write off what's left after a partial payment 1. Record the money the customer did pay in Receive Payments, and check the invoice. 2. When QuickBooks shows the underpayment, select Leave as Underpayment, then save. 3. Write off the remaining balance on that invoice with Step 2. For more on recording partial payments, see how to [receive payments and apply them to invoices](https://logistify.ai/guides/quickbooks-desktop/receive-payments-apply-to-invoices/). ## Small leftover balances Intuit has a separate article for small balances left by an error, an overpayment or an underpayment. It gives two ways to clear them and says to consult your accountant first. - A journal entry: go to Company > Make General Journal Entries. For an underpayment, credit Accounts Receivable with the customer's name and debit the offset account. Then apply the credit in Receive Payments > Discounts and Credits > Credits. - A discount to a charge-off account: Intuit's example uses an income account for minor charge-offs, applied as a discount in Receive Payments the same way as Step 2. A small credit the customer will never use is the reverse case. It's covered in how to [create and apply credit memos](https://logistify.ai/guides/quickbooks-desktop/create-apply-credit-memos/). ## Where QuickBooks Desktop leaves the work to you - Deciding that a balance won't be collected, and when, is a judgment QuickBooks doesn't make. - The aging report shows what's overdue but not why. Someone has to chase the customer and find out. - Intuit's steps write off one customer at a time in Receive Payments. - Tax treatment and the right account are questions for your accountant, not the software. To keep balances from getting this old, see how to [set up payment terms](https://logistify.ai/guides/quickbooks-desktop/set-up-payment-terms/) and how to [send customer statements](https://logistify.ai/guides/quickbooks-desktop/send-customer-statements/). ## How Logistify helps Logistify doesn't write off invoices or chase overdue accounts. The [Accounts Receivable Service](https://logistify.ai/agents/accounts-receivable/) matches customer payments in the bank file to the open invoices they pay and records them in QuickBooks Desktop as Receive Payments. Short payments wait for your team, so a person decides what happens to the balance. If you're weighing a general chatbot for this work, read [whether a general AI chatbot can do accounts receivable in QuickBooks Desktop Enterprise](https://logistify.ai/blog/can-chatgpt-or-claude-do-accounts-receivable-quickbooks-desktop-enterprise/). ## Frequently Asked Questions ### Which account should bad debt go to in QuickBooks Desktop? Intuit's steps use a new expense account, for example one named Bad Debt. Ask your accountant which account and timing fit your books. ### Can I write off only part of an invoice? Yes. Record what the customer paid and leave the rest as an underpayment, then write off the remaining balance with a zero-dollar payment and a discount. ### How do I find invoices that might be uncollectible? Run Reports > Customers & Receivables > A/R Aging Detail. It shows each customer's open balances so you can spot the old ones. ### Does writing off bad debt affect my taxes? This guide doesn't cover tax treatment, and Intuit's steps don't either. Ask your accountant before you write off a balance. ## Sources - [Intuit: Write off bad debt in QuickBooks Desktop](https://quickbooks.intuit.com/learn-support/en-us/help-article/manage-invoices/write-bad-debt-quickbooks-desktop/L3SnZ6fgf_US_en_US) - [Intuit: Write off customer and vendor balances](https://quickbooks.intuit.com/learn-support/en-us/help-article/vendor-management/write-customer-vendor-balances/L738xKfuq_US_en_US) - [Intuit: Resolve common issues when applying a payment towards an invoice](https://quickbooks.intuit.com/learn-support/en-us/help-article/accounting-bookkeeping/resolve-common-issues-applying-payment-towards/L2UMXN8tt_US_en_US) - [Intuit: AR balance on the Chart of Accounts does not match AR balance on reports](https://quickbooks.intuit.com/learn-support/en-us/help-article/accounts-receivable-reports/ar-balance-chart-accounts-match-ar-balance-reports/L7EOlsLhZ_US_en_US)