Write Off


J

JLC

I applied a "Write Off" for a customer who is not going to pay however after
the write off was applied and I looked on the financial page of the customer
record it shows a credit of the amount I wrote off. Shouldn't it bring the
customer balance to zero? Assistance is appreciated. Thanks.
 
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D

DL

You dont generally write off a debt, you journal against Bad Debts to zero
the customer account
 
D

Daniel Billingsley

Apparently, the person that wrote the MOA documentation didn't get that memo.

There's a section explaining the two ways to do wrte offs, which starts with
the following text:

"Write off a bad debt
A payment that a customer fails to make is considered a bad debt. If you
cannot collect a payment that is due to you, you can write off a portion or
all of the customer's balance.

You can write off all or part of a customer balance, or you can write off
all or part of a specific invoice."
 
J

James

Hi,

If you have open invoices that you feel customer is not going to pay, you
need to go through a write off process in application:


1. Open your Invoice that feel is not going to be paid.
2. Choose Receive Payment
3. Enter a $0.00 in Amount field and click on Yes to distribute the payment
to outstanding invoice. YOU NEED TO MAKE SURE TO ENTER ZERO
4. Click on the underlined amount in the Write Off column, this should open
the Write Off window
5. Enter an amount of Write-Off in the amount field and click OK.
6. Choose Save and Close.
7. Now verify in your lists that the Customer balance is $0.00, your
Accounts Receivable is $0.00 and your Write-Off account now reflects $50.00

NOTE: If Don’t enter the $0.00 in the amount column and leave at the
default of whatever the amount of the invoice is you will see a credit
balance in customer account. A credit balance in your Accounts Receivable
and Deposit to make into your checking account for the amount

JG
 
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D

Daniel Billingsley

On a side note, just today I noticed that MOA 2008 includes these write offs
in the Cash Sales reports (perhaps because they reduce the Accounts
Receiveables??).

So, if you're using the sales reports in cash mode to see how much money you
put under the mattress this month for the various items you sell (which I
would think is by definition what it would be for), it will be grossly
distorted. Bad bad bad.
 

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