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When you do not expect to collect the balance of an unpaid invoice, you can write it off. Once an invoice is written off, the status changes from "Unpaid" or "Partially Paid" to "Written Off." You can write off partially paid invoices – but not voided invoices.

A write-off adds a negative distribution line to the invoice, reducing the amount of the invoice once it is posted. The additional line is assigned the write-off fee specified on the GL Interface tab in Accounts Receivable Setup (if a fee has not been selected, you will be allowed to pick one).

The write-off transaction credits (reduces) the AR accrual account and debits the offset account of the write-off fee.

 To write off an invoice
  1. Under Manage Records, click the Transactions tab.
  2. Select Accounts Receivable Invoices from the drop-down list and click Go .
  3. Click Add/Edit Invoices.
  4. Select the unpaid invoice you want to write off. To filter the invoices, select Unpaid Invoices in the drop-down list.
  5. Click View. (You can also select Write Off from the right-click menu.)
  6. Click Write Off Invoice, and Yes to confirm.
  7. If you did not specify a Write Off Fee during setup, select one from the drop-down list when prompted. If you also select Always use this Fee, your choice is saved in the Setup window.
  8. Confirm the selections in the window(s) that open.
  9. If using an accrual method, confirm the selections in the Write Off Invoice window. The explanation you enter displays as a line item description on the unpaid invoice. ACS also logs the posting date.
  10. If using an accrual method, click Post Write Off to complete the process.