Problem: How to adjust Customer Account with Shareholder's account (As Shareholder is Owner of Entity)
Solution: Use Mutual Settlement and Other Expense document as shown below.
1. To write off Receivable Balance, create Mutual Settlement document with Transaction Type Customer Debt Adjustment. Select relevant Expense GL in Account field:
See also 7.5.10.4.1. Creating a Mutual Settlement document. The Main tab
2. At Accounts Receivable tab select the unpaid Invoice from Customer (please can use Pick options to select outstanding invoices):
See also 7.5.10.4.2. Creating a Mutual Settlement document. The Accounts Receivable tab
3. Enter Other Expense with Transaction type Reversal to adjust Expense with Shareholder's account:
See also 7.5.4. Other Expenses
4. Check the records in General Ledger:
See also 7.2.3. General Ledger
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