Write off a vendor balance

GroJGroJ Member Posts: 2

Hello!

In 2016, there were a few bills that were only partially paid by the company I work for. For exemple, the bill would be of 620$ and only paid 600$ (why? I don't know).
The vendor never asked for the rest of the payment. These bills are marked as unpaid and they still appear in the "Aged payables".

Obviously, 2016 is a closed year and I can't go modify these bills. My question is: how to write off a vendor balance, so my balance is accurate and these bills don't appear as unpaid and in the "Aged payables" anymore?

Thank you!

edited October 17, 2018 in Accounting

Comments

  • CharlotteCharlotte Administrator Posts: 644 admin

    Hi @GroJ ! I'd be happy to offer my advice here, with the caveat that I'm not personally an accounting professional. When it comes to things related to money owed, it's never a bad idea to run questions by a pro.

    That said, I understand this should be fairly simple. I believe you would need to create a journal where you debit accounts payable and credit other income. I'd recommend also reviewing our FAQ for correctly recording bad debt, as this case is similar.

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