Recommended Setup
Before you begin, you may want to consider creating the following accounts in the Chart of Accounts:
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.
Performing a Write-off
We will use an AR invoice as an example. The same can be performed for APs in a similar manner.
Step 1: Settle the invoice by excluding the write-off amount from the settlement amount.
In the Transaction Data Entry, click “Pay Current Invoice”.
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)
Save and close.
Step 2: Create a new Transaction Data Entry invoice to perform the write-off
Create a new Transaction Data Entry invoice. The new invoice must be to the same customer and of type 'Receivable'.
Input the amount to write-off as a negative figure. Save and Post.
Step 3: Settle the write-off invoice.
In the write-off invoice, click on ‘Pay Current Invoice’.
In the Receipt Instructions, select the write-off bank account and Mode as “Write Off”. Click ‘OK’.
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.
Save and close.
Once the above is complete, go back to the original AR invoice. You will notice that there are now two payment records, one which is a bank wire transfer and another a write-off.
