Do a credit instead of clearing it as a GL Distribution through Cash Receipts.

Joe

We are in a regulated industry that has specific rules on returning product. While we would not physically be returning product, using a credit could cause confusion.

That being said, I was able to successfully issue a negative A/R invoice and force a negative commission to balance out the invoice getting written off. However, since our commissions percentages can vary by item, I can't imagine the amount of work that would have to go through if we had many invoices to write-off.

Is there possibly a simpler way of doing this?

I've done it several ways over the years, but typically I do it the way you did originally. Doing a Cash Receipt, clearing the invoice and then a neg GL Distribution to our Bad Debt Expense Account.

We have a complex commission structure, so we have a lot of adjustments anyway. I enter the amounts off of the commission reports on a spreadsheet I created that figures the dollar amount to be paid.

I would assume though, doing Credits to offset the original invoice is the typical way it should be done.

Joe