Write offs must be used of you are using the invoices or hybrid accounting basis and wish to write off bad debt. Write offs appear on the balance sheet as bad debt written off.
Write offs enable bad debts to be canceled and must be matched to an existing, billed, invoice. Write offs are required if using the invoice or hybrid accounting basis. If a client is billed accidently, enter a write off to cancel the debt.
Access Write offs from Customer operations by clicking the New Write off or Edit Write Off buttons. The form displays sufficient information to decide whether a write off may be required. Write offs cannot be created for unbilled invoices - delete them.
Existing write offs can be edited by double clicking the write offs display grid on Customer operations when the correct write off is highlighted.
Use Workshop Management to write off time, plant and materials charges.
A write off's purpose is to decrease the value of an existing debt. To write off multiple invoices enter a write off for each invoice. Write offs show as bad debt in the trail balance and balance sheet.
To create a new write off entry click New to start the write offs form with the fields refering to the currently selected invoice.
The write off amount defaults to the total amount of the selected invoice.
It is a good idea to include the reason for the write off in the narrative.
To edit a write off select the relevant one and click Edit.
To delete a write off highlight the correct write off and click the Delete button. If you are using the Invoice or hybrid accounting basis, and G.S.T. has been run for the period of the write off, the write off cannot be deleted.