Where can I see the details for bad debt?

Problem Statement

You need to find where bad debt is shown and why it can differ between the Invoices report and the Account Summary report.

Solution

Bad debt is the sum of credit notes with reason code write-off. You can see it in:

• Invoices report: Column Write-off Amount.
• Account Summary: Bad debt column. This value depends on whether "Show amounts after the tax is applied" and "Show amounts after the discount is applied" are checked. With tax/discount included, bad debt includes those components; when unchecked, it shows the amount before tax/discount.

Example: Account Summary can show $287.04 (with tax) for Dec 2019; unchecking "Show amounts after the tax is applied" and "Show amounts after the discount is applied" can show $254.02 (pre-tax). The Invoices report Write-off Amount (e.g. $287.04) may include tax, while Account Summary bad debt can be $254.02 when tax is excluded.

$254.03 × (1 + 13%) = $287.04

Additional Information

To see if bad debt has a tax rate: in the line items export, filter by invoice number and check column M for the tax rate (e.g. 13% for invoice 228).