UNIKBOK / Swedish bookkeeping examples / Bad debtPå svenska
How to book a bad debt
A customer invoice of SEK 1,000 including VAT will not be paid, for example because the customer has gone bankrupt.
How to book it
Invoice methodInvoice method
| Account | Account name | Debit | Credit |
|---|---|---|---|
| 6351 | Konstaterade förluster på kundfordringar (Confirmed bad debts) | 800 | |
| 2611 | Utgående moms 25 % (Output VAT 25%) | 200 | |
| 1510 | Kundfordringar (Accounts receivable) | 1,000 | |
| Total | 1,000 | 1,000 |
Cash method (kontantmetoden)Cash method
With the cash method nothing is recorded, since the invoice was never booked. If it was included at the previous year-end closing, the loss is booked as with the invoice method.
Common mistakes
- Reversing the VAT before the loss is confirmed. A suspected loss does not allow you to reduce output VAT.
The UNIKBOK accounting software has a ready-made template for bad debt. Take a photo of the document, and the software suggests the accounts, VAT and journal entry for you.