Invoices/Bills - Feature to 'write off' as bad debt
At the moment, you need to raise a credit note to write off a bad debt, which then records the invoice as "paid" which is extremely irksome, and factually incorrect. There needs to be an actual "write off" option so that the debts don't show up constantly in your reports and you can claim a tax deduction for them, but they don't get recorded as paid.

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Michelle Kneen commented
We have a company in Dubai and it is illegal to raise a credit note for a Bad debt, So we would need an alternative way of doing this.
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Renee Allan commented
Xero only interprets credit allocations as cash transactions which is inaccurate when running Cash reports ie P&L as the write off is not cash received - it is quite the contrary. Couldn't Xero recognise the Source - that denotes it as a receivable credit note -write off - and not treat it as Cash