How do I settle a small difference left on a customer or supplier balance?

A balance that will never be paid — a small remainder after a rounded payment, a discount you agreed after invoicing, an amount you have given up on — is cleared with Settle difference rather than left sitting on the statement forever. 1. Open Reports, then Account statement, and pick the customer or supplier. 2. Choose Settle difference. 3. Enter the amount to settle. It cannot be more than what is outstanding. 4. Choose the reason: Discount, Write-off, or Bad debt. Bad debt is only offered when the party owes you. 5. Add a note if it needs explaining later, and save. What it does to your books: • It posts a new journal entry to your Discounts & Write-offs account. It never edits or deletes the original bill — the history stays intact and the note records why. • Money owed TO you reduces against the write-off expense account. Money YOU owe reduces against the write-off income account. The direction is worked out from their live balance, so there is nothing to choose. Two things that will stop you: • Only customer and supplier accounts can be settled this way. • Your Discounts & Write-offs accounts must exist first. If they do not, the app says so instead of posting.