Glossary
Debt settlement
Debt settlement is an agreement with a debtor to pay a set amount that closes the debt, which may be less than the full sum.
What it means for a shop owner
You accept it when full collection is doubtful. Write the agreement and have both sides sign. The gap between the original debt and what is paid is recorded as a loss or discount.
A worked example
A debtor who owes 1000 pays 700, so you close the debt and record 300 as a loss.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes