Write off small statement balance for Receivable Accounts

You can write off an uneconomic or unrecoverable balance for one or all Receivable Accounts that have a small balance.

Introduction

Write off balance for an individual Receivable account

Global Write-Off of Small Balances 

Introduction

You can write off small balances between $0.01 and $10.00 for a receivable account. This process creates an invoice or credit (not sent to your customer) that is displayed in the Transactions tab and can be allocated as needed.

There are two ways to write off balances:

1. Individual Write-Off: Apply to a specific account using the Details tab or the Allocate Transactions screen.
2. Global Write-Off: Apply to all accounts with balances below a specified threshold in one go.

⚠️ Important: For the global option, remember that all accounts with balances under the selected amount will be affected. For example, if 20 accounts have balances under $3 and you set the threshold to $5, the balances for all 20 accounts will be written off.

To use this function, you need the security role Receivable Write Off Small Balance assigned. Learn more about assigning roles here.

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Write off balance for an individual Receivable account

You can write off small balances for a specific account from two screens:

Option 1: From the Receivable Account Details Tab

• Navigate to Receivables > Receivable Accounts.
• Search for and select the account you want to adjust.
• In the Details tab, locate the Account History section and click Write Off.

• The remaining balance will appear in the Write Off Amount field. You can adjust this amount if necessary.
• The General Ledger account used for the write-off is predefined in the General Ledger Manager.
• Click Create Write Off.

The transaction will now appear in the account’s balance. To finalise, allocate the write-off transaction by navigating to Receivable Account > Transactions > Allocate Transactions.

Option 2: From the Allocate Transactions Screen

• Navigate to Receivables > Allocate Account Transactions.
• Select the desired account and click Write Off Small Amount at the bottom right.

• The balance for the account will display. Adjust the amount if necessary.
• Select the General Ledger account to apply the write-off.
• Click Create Write Off.

The transaction will now be created. To complete the process, allocate the new write-off transaction by navigating to Receivable Account > Transactions > Allocate Transactions. 

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Global Write-Off of Small Balances 

This option allows you to write off small balances for all Receivable accounts below a specified value.

Important: The global write-off will apply to all accounts meeting the criteria. For example, if 20 accounts have balances under $5 and you set the limit at $10, balances for all 20 accounts will be written off.

1. Navigate to Receivables > Write Off Small Balances.
2. Select the General Ledger account for the write-off.
3. Enter the maximum balance amount to write off (e.g., $10.00).
4. Click Save Defaults if you’d like to save these settings for future use.
5. Click Write Off Small Balances.

Transactions will be created for each affected Receivable account. To finalise, allocate these transactions under Receivable Account > Transactions > Allocate Transactions. 

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