The write-off function allows you to acknowledge an invoice as uncollectable and record the loss
accordingly.
- Click the button to Write off the invoice
- Top Section: Bill Information.
- Select the Expense GL Account where the write-off amount will be reflected.
- Enter a Description to explain the reason for the write-off.
- Enter the Amount you wish to write off (full invoice amount or a specific portion).
- Selecting a GL Account here automatically populates the same account for all billing lines (explained below) for efficiency.
- Bottom Section: Billing Lines
- This section allows for line-item write-offs if your invoice has multiple charges.
- Entering information here will write off the specified amount against that particular line item.
Key Points:
- Writing off an invoice removes the designated amount from your accounts receivable, acknowledging it as a bad debt.
- A Billing Adjustment with the type “Write Off” is automatically generated to track the write-off.
- Choosing a GL account at the bill information level saves time by applying it to all lines by default.
- Line-item write-offs allow for a more granular approach, targeting specific charges within the invoice.
Important Note:
- Write-offs should be used with caution, as they represent a loss of revenue.
- Ensure you have exhausted all collection efforts before writing off an invoice.
