Create Bad Debt Accounts:

Before writing off a foreign currency invoice, create the necessary accounts:

Create a Bad Debt Clearing Account:

1. On the left side-menu, select Accountant > Chart of Accounts.
2. Click 'New Account' in the top right corner.
3. In the Account Type drop-down, select Customer Prepayments and Customer Credits.
4. Name the account Bad Debt Clearing.
5. Click 'Save'.

Create a Bad Debt Expense Account:

1. On the left side-menu, select Accountant > Chart of Accounts.
2. Click 'New Account' in the top right corner.
3. In the Account Type drop-down, select Operating Expense.
4. Name the account Bad Debt Expense.
5. Click 'Save'.

Record the Payment for the Foreign Currency Invoice:

1. On the left-side menu, select Sales > Invoices.
2. Select the invoice you need to write off.
3. In the bottom right corner of the invoice, find and note the exchange rate.
4. Click 'Save' to exit the invoice details.

Record the Payment:

1. On the invoice details page, click 'Record a payment' manually.
2. In the Payment Method drop-down, select the payment method (e.g., Refund).
3. In the Payment Account drop-down, choose the Bad Debt Clearing account.
4. Change the exchange rate to the rate you wrote down.
   - The amount in your business currency will match the amount shown on the invoice. Take note of this amount.
5. Click 'Submit' to complete the payment recording.

Create an Expense Transaction:

To record the bad debt as an expense, create an expense transaction:

1. On the left-side menu, select Purchases > Expenses
2. Click 'New Expense'.
3. Enter a description (e.g., "Bad Debt Write-off").
4. Choose the same date as the payment you just recorded.
5. In the Account drop-down, select the Bad Debt Clearing account.
6. For the Amount, enter the same amount as shown on the invoice (in your business currency).
7. In the Category drop-down, select the Bad Debt Expense account.
8. Click 'Save' to complete the expense transaction.

Verify the Write-Off:

To ensure that the invoice has been successfully written off:

1. Go to Reports > General Ledger.
2. Filter for the dates of the transactions.
3. Check that:
   - The invoice balance in Accounts Receivable is now zero.
   - The Sales and Bad Debt Expense accounts offset each other.
   - There is no gain or loss on foreign exchange.