Writing Off an Invoice

You can use the Cash Receipts form to write off a customer invoice.

Cash Receipts form showing open batches at the top of the screen. The table includes deposit date, last worked date, batch owner, and total deposit.

To write off an invoice on the cash receipts form:

Access the Cash Receipts form (found in the Back Office menu under Accounts Receivable|Action).

Use the form to edit a new or existing cash receipts batch:

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To open an existing batch, click the Batch ID in the Cash Receipts panel.

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To start a new cash receipts batch, click New deposit in the Receipt Entry panel.

Receipt Entry panel A deposit number is entered. Bank is set to "RECEIVABLE ACCT-CACHET" and the description says "Writing off an invoice".

The Deposit number populates automatically. You can edit it.

Select the Bank.

You can enter the Deposit Date, or allow the system to populate it automatically with the current date.

Enter a Deposit Description, if desired. For example, you can enter the reason for the write-off transaction or the actual date if it is different from the posting date. There are two lines that you can use.

Screenshot of the Deposit Details configured as an example of a write-off. The customer line deposit amount is set to 0.00, while the Additional Line Amount column is set to the negative of the value in the row above it.

Enter the initial Deposit Detail information as shown:

Column

Description

Line Type

Select Customer.

Deposit Type

Select Write-Off.

Deposit Amount

Enter 0.00.

Deposit Reference

Enter the unique reference ID, which can include alphanumeric characters but not spaces.

Customer ID

Enter the customer ID here. The customer's Outstanding Invoices display.

Customer Name

Defaults to the name associated with the Customer ID.

You can change this if the name on the check is different.

Posting Type

Select the posting type for Invoices.

Invoice Number

Click an invoice number in the Outstanding Invoices list to add its information to the line. Otherwise, continue entering information.

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You can select Invoices matching deposit amount to filter the Outstanding Invoices and show only the ones that match the deposit amount.

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Click Reload outstanding invoices

in the Deposit Detail panel to see the remaining balance on the invoices included in this batch.

Outstanding Invoices list filtered for 'All Invoices'. The two invoices added to the cash posting have checkmarks next to their IDs.

Enter a second line in the Deposit Detail panel:

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Set Line Type to Additional.

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Select the Posting type for write-offs.

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Enter the negative cash value in the Amount field that "cancels" the total invoice amount.

Go back to the first line and enter the positive cash value in the Amount field to write off the invoice.

10.

Make sure the Deposit Remaining displays as 0.00.

11.

If you are done entering details for this posting, click Post.

Otherwise, click Clear – the system saves your progress as an open batch at the top of the form.