QB Issue Resolution:

When you inactivate a customer that has an open balance or uncollectable balance in QuickBooks Online (QBO), the system will automatically create an adjusting transaction to offset the balance. Doing so will ensure that you’ll have an accurate record in your books.

 

However, we don’t recommend inactive your customers who have an open balance. To accurately track your customers unpaid balance, you’ll need to record it as a bad debt. This way, your accounts receivable and net income are up-to-date.

 

Here’s how:

  1. Go to the Gear icon.
  2. Under Your Company, select Chart of Accounts.
  3. Select New at the upper right corner.
  4. From the Account Type drop-down, select Expenses.
  5. From the Detail Type drop-down, select Bad debts.
  6. In the Name field, enter Bad debts.
  7. Click Save and Close.

You can also check this article for more detailed steps: Write off Bad Debt.

 

I also recommend reaching out to your accountant. This way, you’ll be guided properly in ensuring an accurate tracking of your income and expense transactions.

 

Also, feel free to visit our Reports and accounting page to learn some tips on managing your reports.

Resolution for Issue 'I have a few customers who just wont pay. I need to remove them from my reports but when I try to make them inactive QB trys to make an adjustment' available: Yes (Solved).
Source: Intuit Community forum.

I have a few customers who just wont pay. I need to remove them from my reports but when I try to make them inactive QB trys to make an adjustment: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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