In this guide, we will show you how to manage Write Offs in the Accounts Receivable page in Finance.
Access: The minimum permissions required to manage Write Offs are found in the Finance Module of Config > Setup > Roles and Permissions.
This guide will cover how to:
- Configure Write Offs
- Add a New Write Off to the selected financial year
- View and Edit Write Offs in the selected financial year
- Post a Write Off and generate a Journal
- Print a Write Off
- Cancel a Write Off
- Write Offs in Customers page
- Write Offs in Invoices & Credit Notes page
- Customer Balance calculation in Accounts Receivable pages
- Reports
Configure Write Offs
Go to Config > Finance > AR Configuration
In the Write Off panel, enter details of the Cost Centre, Ledger Code and Fund to use for writing off bad debt. Tick the Require Evidence checkbox to make it mandatory to upload evidence of the Write Off. Click Save.
Note: Users will be able to enter the information once, and it will be used for every financial year.
Add a New Write Off to the selected financial year
To begin, go to Module > Finance > Accounts Receivable > Write Offs.
Click New to open the Write Off Details page.
In the Write Of Details panel, it is mandatory to select Customer and the outstanding Invoice Number.
Note: The Invoice Number selected will update the Original Inv Balance (original posted gross balance) and Outstanding Inv Balance (gross balance) fields.
Next, in the Available Invoice Lines panel, enter the Write Off Gross Amount.
Click Save.
In the Write Off Details panel, click the blue ‘plus’ icon to Add Evidence by uploading attachments.
Note: Customers and Invoices & Credit Notes pages can be opened in a new tab by clicking on the links.
View and Edit Write Offs in the selected financial year
In the Write Offs page, select a Write Off and click View/Edit. If editing, make sure to Save at the end.
Post a Write Off and generate a Journal
In the Writes Offs page, select a Write Off and click Post. The Status will update to Posted.
The Write Off will be now be displayed in the Journal Browser screen (Modules > Finance > General Ledger > Journal Browser).
Print a Write Off
The Write Off, once Posted, can be printed. In the Write Offs page, select a Write Off and click Print.
Cancel a Write Off
In the Write Offs page, select a Write Off and click Cancel. The Status will update to Cancelled.
Write Offs in Customers page
Go to Modules > Finance > Accounts Receivable > Customers.
Write Off functionality can also be found in the Activity panel in the Customers page where Finance users can:
- Filter using the Write Offs check box.
- Add Write Off from this panel.
- Double click on a Write Off to go directly to the Write Offs page.
- Cancel a Write Off from this panel.
- View Write Off (£) column.
- Account Balance Posted (£) will take into account any Write Offs.
Write Offs in Invoices & Credit Notes page
Go to Modules > Finance > Accounts Receivable > Invoices & Credit Notes.
Write Off functionality can also be found in the Invoices & Credit Notes panel in the Invoices & Credit Notes page where Finance users can:
- View Write Off (£) column.
Customer Balance calculation in Accounts Receivable pages
Go to Modules > Finance > Accounts Receivable.
Write Offs are accounted for as part of the Customer Balance calculation in the following Accounts Receivable pages:
- Customers > Customers panel – Balance
- Customers > Customer Details > Activity panel – Account Balance Posted
- Refunds > Add/View/Edit Refund – Balance of Account
- Receipts > Add/View/Edit (both types of Receipt) – Outstanding Balance
- Invoices & Credit Notes > Credit Note – Originating Invoice Total
Reports
The following Reports reflect the Write Offs:
- Aged Debtor
- Audit Trail
- Cost Centre Summary by Cost Centre
- Cost Centre Transactions
- Detailed Cost Centre Transactions
- Income and Expenditure Source Analysis
- Ledger Code Transactions
- VAT Reports