How do other SaaS companies handle doing write-offs in NetSuite? Customer example – A customer signed a three year deal for $36,000 on 3/1/19, billed semiannually, and has been deemed uncollectible after the first invoice ($6,000) was not paid on 5/30/19. I would make a JE to write off the AR balance and offset to Bad Debt for $6k and adjust the revenue schedule to push the unrecognized balance sitting in deferred revenue of $3k into revenue to properly offset bad debt in the period. But what do I do with the remaining $30k in uninvoiced billings and unearned revenue? Would I alter the original sales order and revenue plan or is there a better method to recording this?

use return authorization for this. Usually accounting has a waiting period after which they formally write off deadbeats. Then you merge SO and RA and you are done

Return authorization is a GL posting transaction?

yes, posting, yes, with SB

You’re a life saver thank you!

yes, it will work for invoices as well. If you only have an invoice as your source transaction then still create RA, that is your approval for CM since CM does not have it. and then merge all of that as well

Can you debit revenue and def rev. On a RA?

RA is not posting transaction

Dr - def rev Dr - bad debt write off cr - AR

it is not posting transaction

Ah