How do I deal with customer non-payment?

[Maf. King]

On Thursday 03 December 2009 00:40:24 Heather Daley wrote:
> I have a customer who has paid part of an invoice but is not going to pay
> the rest.  How do I account for that "lost" income?

Hi Heather,

2 ways - you could issue a credit note to the customer and reduce Income 
(probably the best way, since you are getting part-payment), 
or 
you could allocate the "lost" bit to Expenses:Bad Debt (although that is more 
for when customers go bankrupt and don't pay any of the invoice)

HTH, and IANAA

Maf.