Marking an invoice as uncollectible allows firms to write off invoices when the remaining balance is no longer expected to be paid. Instead of leaving the invoice marked as past due indefinitely, this action records that the outstanding amount is unlikely to be collected while keeping the invoice available for reporting purposes.

There are two places within the platform where you can mark an invoice as uncollectible. Continue reading to learn more.

Navigate to Money from the left-side menu, then select Invoices. Locate the invoice you would like to mark as uncollectible, click the three dots on the far right of the invoice row, and select Mark as Uncollectible.

Once marked as uncollectible, the invoice status in the Invoices list will update to reflect its uncollectible status in the Status column.

To mark an invoice as uncollectible from the Invoice Preview page, open the invoice you would like to update, click More, and select Mark as Uncollectible.

Once completed, the invoice status will update at the top of the invoice.

If an invoice has been partially paid, the remaining unpaid balance can still be marked as uncollectible. Navigate to the invoice you would like to update, either from the Invoices list page or the Preview invoice, and mark it as uncollectible.

The system will automatically detect the partial payment and apply the uncollectible status only to the outstanding balance.

If the invoice has already been synced to QuickBooks Online, marking the invoice as uncollectible in Monograph will automatically update the invoice status in QBO as part of the same action.

If the invoice has not yet been synced to QuickBooks Online, a confirmation pop-up will appear during the process asking whether you would also like to update the invoice in QBO. Confirming this action will send the invoice to QuickBooks Online and apply the uncollectible status there as well.

Once marked as uncollectible, the remaining unpaid balance is recorded as a bad debt expense to offset the revenue that had previously been recognized.

To quickly identify which invoices have been marked as uncollectible, besides the Invoices list page, where the Activity column will reflect this status in detail. There are also additional areas throughout the platform where uncollectible balances can be viewed and tracked.

The Invoice Overview shows uncollectible amounts separately from active outstanding balances so firms can track invoices that are no longer expected to be paid.

The graph shows a visual comparison of all invoices that are Paid, Open, Past Due, and Uncollectible, broken down by month within the specified date range and based on any filters applied. Click here to learn more on the Invoices overview page.

From the Invoice Activity Log, open the invoice and navigate to the Activity Log section. This view will display a detailed history of changes made to the invoice, including who made the update along with the corresponding date and time.