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• Revenue/Expense write-off account.

• Write-off (dummy) bank account. This bank account will need to be added to the corresponding 'W' Type company in the Address Book. To set this up, you can follow the steps in VIP - Adding a Bank Account.

Performing a Write-off

We will use an AR invoice as an example. The same can be performed for APs in a similar manner.

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1. In the Transaction Data Entry, click “Pay Current Invoice”.

2. In the Payment and Receipts form, input the amount received leaving out the amount to be written off. (in this example, the amount to write-off will be $5)

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3. Save and close.

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1. Create a new Transaction Data Entry invoice. The new invoice must be to the same customer and of type 'Receivable'.

2. Input the amount to write-off as a negative figure. Save and Post.
   

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Step 3: Settle the write-off invoice.

1. In the write-off invoice, click on ‘Pay Current Invoice’.

2. In the Receipt Instructions, select the write-off bank account and Mode as “Write Off”. Click ‘OK’.
   

   

3. In the Payments and Receipts screen, you will notice that there are two transaction line items that should net each other off. Select both line items by checking the checkboxes on the left.
   

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4. Save and close.

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