Manage Bad Debt

[For Admins] Learn how to manage bad debt by a removing past-due balance on a billing account while being able to report on the bad debt.

Nicole avatar
Written by Nicole
Updated over a week ago

There may be rare instances when a family leaves your program without paying the open balance on their child's billing account. In these cases, brightwheel recommends following specific instructions for voiding an invoice or issuing a credit that notes the balance was removed due to bad debt. Noting that the balance was removed because of bad debt will allow you to pull reporting information for all instances of bad debt.


Void an Invoice for Bad Debt

Invoices can be voided by an administrator at any time. These adjustments will be delineated by an ⓘ icon that will appear on the line item for the charge within the invoice. This icon will indicate any adjustments including reduction adjustments.

  1. Navigate to the student’s billing profile

  2. Locate the Invoice in question from the All Transactions tab

  3. Click the Actions drop-down menu option and select Void invoice

  4. Select a Reason from the drop-down menu
    NOTE: If you would like to add a new reason for Bad Debt, simply type out the full reason text and hit Enter or click Create

  5. Add any relevant Notes (optional)

  6. Check/uncheck the 'Notify parents about this change' box as desired

  7. Click Void when ready


Issue a Credit for Bad Debt

  1. Navigate to the student’s billing profile

  2. From the Select an action drop-down, choose to Add a credit

  3. Enter the Credit amount, choose a Reason from the drop-down
    💡 If you would like to add a new reason for Bad Debt, simply type out the full reason text and hit Enter or click Create

  4. Optionally, if you’d like to apply the credit to a posted invoice type the amount applied on the open invoice(s) row

  5. Press Save & apply


Report on Bad Debt

If you void an invoice or add a credit and indicate bad debt is the reason, we recommend using the Billing Transactions Report to report on this information. You can view the reason, Bad Debt, in the Transaction Description column of the report.

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