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.
Navigate to the student’s billing profile
Locate the Invoice in question from the All Transactions tab
Click the Actions drop-down menu option and select Void invoice
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 CreateAdd any relevant Notes (optional)
Check/uncheck the 'Notify parents about this change' box as desired
Click Void when ready
Issue a Credit for Bad Debt
Navigate to the student’s billing profile
From the Select an action drop-down, choose to Add a credit
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 CreateOptionally, if you’d like to apply the credit to a posted invoice type the amount applied on the open invoice(s) row
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.
