Write off small statement balance for Payable Accounts

If you have an uneconomic or unrecoverable balance for a Receivable account, you can write it off. This may be done for a selected Receivable Account or globally for all Receivable accounts with a small balance.

Introduction

Account Transaction Type

Payable Account Type

Write off small balance for a Payable account

Introduction

You can write off a small balance that is uneconomic for a Payable account.

The process creates a transaction that is displayed in the Transactions tab for the Payable account. This can now be allocated as appropriate.

You must set up an Account Transaction Type for write-offs and a Payable Account Type.

You will need the Security role Payable Account Write Off Small Amount in order to be able to perform this function. Refer to Assign Security roles to read how to do this.

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Account Transaction Type

You will need to set up an Account Transaction Type. This is only needed once and is used for all write-offs.

• Go to Settings > Account Transaction Types.
• Click New Account Transaction Type.

In the Create Account Transaction Type screen:

• Code: Add a Code, e.g. PAYWOFF.
• Description: Add a Description for your write-off code.
• General Ledger account: Select a General Ledger Account, e.g. Purchases.
• Tax: Select a Tax code, e.g. (GSTPUR) GST on Purchases.
• Click Save.

On the next screen:

• Click Save and close.

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Payable Account Type

You will need to set up a Payable Account Type for write-offs. This is only needed once and is used for all write-offs.

• Go to Payables > Account Types.
• Click Account Type.

In the search list:

• Select Payable Accounts.

In the Account transaction types section:

• Writeoff: Select the Account Transaction Type (PAYWOFF) Payable write off small balance that you created above.
• Click Save.

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Write off small balance for a Payable account

To write off a small balance:

• Go to Payables > Supplier Account.
• Select the Supplier/Payable you want.

On the Details tab, in the Financial details section, you can see the balance for this Supplier.

• Click Write off.

In the Write off amount screen, the amount of the small balance will be shown. You can alter this amount if necessary.

• Click Create write off.

The balance displayed for the Supplier will update.

You can also see the transaction that has been created in the Transaction tab.

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