FAQ #: 53
How do I "write-off" an amount, such as bad debt, service charge, freight, etc from a customer's account?

You can use this procedure to write-off an invoice or unused credit memo from a customer's account. If you are writing off a credit amount, you will need to use the "Reversing Entries" mode of Cash Posting.

1. Enter a check number as reference, if desired, or leave blank.

2. Enter an amount, if you are paying other invoices at the same time, or leave the amount field blank. If you are writing off a credit using the "Reversing Entries" mode, you should leave this field blank.

3. Enter any cash discounts taken, if you are paying other invoices at the same time, or leave the cash discount field blank. If you are writing off a credit using the "Reversing Entries" mode, leave this field blank.

4. Select the appropriate type of write-off from the credit type list. The general ledger number defined for this write-off type will default.

5. Enter the amount of the write-off. If this is a credit memo write-off, enter the amount as negative.

6. Enter the correct general ledger number. This will default to the account defined for this type of write-off in the Application Interface Maintenance program. You may change this number if desired.

7. Highlight the appropriate invoice. If you are writing off a credit memo, you will then click on "R everse". If you are writing off an invoice, you will click on "Override". Enter the appropriate amount in the "Credit Amount" field. If this is a credit memo write-off, the amount should be negative.

8. Click on OK to apply the amount.

Continue the remainder of the posting as normal. If you are in the "Reversing Entries" you will want to return the post mode option screen and select "Enter Cash Receipts" to return to the regular posting mode.