How to write-off amounts on customer accounts
In AR Periodic Processing there is a function called A/R Create Write-Off Batch. This function allows the user to create a batch of adjustment transactions to write off outstanding or overdue balances on a single customer account, or a range of customer accounts.
From the Create Write-Off Batch screen, the user has the option to identify specific types of transactions to write-off, and a range of values to be written off. For example, a user may specify to write off 'All Transactions' that have a balance of -0.10 to 0.10. This means that the system will look for any outstanding balance on any transaction which ranges from a credit balance of ten cents to a balance owing of ten cents and create an adjustment to remove the o/s balance from the transaction. Once the 'Process' button is clicked, adjustment entries are created and placed in a new adjustment batch. Go to AR Transactions / Adjustment Batch to find the new batch and the write-off entries. They can be edited before posting.
Note that these entries can also be done manually:
- through the Adjustment Batch / Adjustment Entry window.
- through the receipt entry screen at the time of receipt entry, providing the 'Allow Adjustments in Receipt Batches' option is turned on in AR Setup / Options on the Transactions tab.
However, the above alternatives allow only one adjustment to be entered at a time. Using the Create Write-Off Batch function allows for adjustments to multiple customer accounts and transactions in one click.
The default write-off GL Account is specified in AR Setup / Accounts Sets. However, this account can be changed for any entry prior to posting the adjustment batch.