We have some clients who stopped paying us 5 years we need to remove them from receivables without issuing credit notes. what is the best way and consider them losses

You've come to the right place for answers, @accounting536.

I'm happy to help you manage your client's transaction that hasn't been paid for five years in QuickBooks Online. This will keep your receivables and net income up to date.

The best way to handle your uncollectible transactions is to write a bad debt. This method will require you to issue a credit note to correct your customer reports.

To begin, let's launch the Accounts Receivable Ageing Detail report. Then customise it to verify all uncollectible invoices from your customer.

Here's how: 

1. Go to the Report menu on the left side. 
2. Type the said report in the search box and press Enter on your keyboard. 
3. Click Customise, then filter the necessary fields.
4. Hit Run report. 

After that, set up a bad debt expense account to personalise the data. Please follow the steps below: 

1. Go to the Accounting menu, then choose Chart of Accounts. 
2. Click the New button. 
3. Select Expenses in the Account Type drop-down. 
4. From the Detail Type, select Bad debts.
5. Hit Save and close. 

Afterward, you'll need to create a non-inventory item to balance the accounting. Let me show you how: 

1. Go to the Sales tab, then select Product and Services. 
2. Click New and choose Non-inventory. 
3. Enter a unique name field.
4. In the Income account ▼ drop-down, select the Bad debts you previously created 
5. Hit Save and close. 

Next is to generate a credit note on all unpaid invoices to write off the transactions. Follow the instructions underneath:

1. Click +New, then choose a Credit note. 
2. Pick the customer name in the field. 
3. Select Bad debts in the Product/Service section.
4. Enter the amount of the unpaid transactions in the field and hit Save and new. 
5. Repeat the steps for the remaining transactions. 

Once done, you can now link the credit to the unpaid invoices. Let me guide you how: 

1. Click New on the upper left side and pick Received payment. 
2. Choose the customer name in the field. 
3. Select the invoice and credit. 
4. Hit Save and close. 

Once everything is recorded, I'd recommend running the quick report to check all the receivables you tagged as bad debt. You can go to your Chart of Accounts and click Run report. 

Additionally, check out this article to learn how to personalise your chart of accounts and handle customer transactions in QuickBooks: 

• Manage Customers and income
• Learn about the chart of accounts in QuickBooks

Feel free to mention me in this thread if you have additional questions about your account. I'm happy to help you. Keep safe, @accounting536.