Close an uncollectible account

To close an uncollectible account:

1. In Paladin, on the top ribbon, select the Customers module.
2. In the Customers tab, enter or select a customer account from the Customer list.
3. Select the Balances tab and note the total amount owed by the customer.
4. On the bottom ribbon of the tab, select F5 Account Payment.
5. In the Account Payment window, enter the total amount owed in the Discount Allowed box.
6. Enter 0.00 in the Amount of Payment box.
7. Enter 0000 in the Check number box.
8. Click F12 Accept.
9. Select the Credit tab.
10. Enter 0 in the Credit Limit box.
11. Click F12 Save.
12. On the bottom ribbon of the tab, select F6 Payment Management.
13. In the Payment Management window, in the Credit Invoices pane, select the line item that includes the Discount Allowed amount.
14. In the Credit Notes Field, enter notes, then click Save Item.
15. Close the Payment Management window.
16. Select the Credit tab.
17. On the top of the Sales History pane, click the Customer Friendly magnifying glass.
18. In the Recent Sales History window, highlight the transaction with the Pmt Type DISCOUNT.

 
Figure 1: Pmt Type DISCOUNT

19. On the bottom left of the window, select Edit/Void.
20. In the Invoice Edit/Void window, enter Bad Debt in the PO/Memo box.
21. Select Update.
22. In the Confirm Edit/Void Invoice window, enter your manager password and click OK.

The Recent Sales History window now shows the PO # status as Bad Debt.

Figure 2: PO # Bad Debt

To run a report to see all of the accounts discounted for being uncollectible or considered Bad Debt, and you followed the instructions above, you can run a Transaction report for the specific transaction information including a  “Bad Debt” indicator. 

Figure 3: Transaction report

Notes:

• • To delete the customer from the system, on the bottom ribbon of Paladin’s Customers module, click F2 Delete Customer.
  • To identify the account in collections, add a checkout note or rename the account with COLLECTIONS as a prefix.
  • To avoid printing the statement for a particular account, in Paladin’s Customers module Form Control pane, make sure the Create month-end statement checkbox is not selected.