Write off small statement balance for Receivable 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

Write off balance for an individual Receivable account

Global Write of Small Balances


Introduction

You are able to write off a balance that is uneconomic or unrecoverable for a Receivable account.

Balances between 0.00 to 10.00 may be written off.

The process creates an invoice or credit that is not sent to your customer.

When a balance is written off, the system will generate a Receivable credit or Receivable invoice that is then displayed in the Transactions tab for the Receivable account. This can now be allocated as appropriate.

This credit or invoice will not be sent to the customer.

 

This process may be run for a single Receivable account from two possible screens, allowing you to do this easily as part of your workflow, or globally for all Receivable accounts that fit the parameter selected.

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

Return to Top of Page


Write off balance for an individual Receivable account

This function is located on both:

    • the Receivable account > Details tab, and
    • the Receivable account > Allocate transactions screen.

Write off From Receivable account screen:

Use this feature to write off an uneconomic balance for a single Receivable account.

  • Go to Receivables > Receivable accounts.
  • Search for and select the Receivable account you want.
  • Go to the Details tab, Account history section.
  • Click Write off

 

In the next screen, the remaining balance will appear in the Write off amount field.

  • You may overwrite this amount if you wish to write off a different amount.
  • The General ledger account to write off the balance to is set in the General Ledger manager.
  • Click Create write off.

 

The transaction will be created.

  • Next, you should allocate the new write-off transaction to the Receivable account balance.
  • This can be done from the Receivable account > Transaction menu > Allocate Transactions.

Write off From Allocate transactions screen:

Use this feature to write off an uneconomic balance for a single Receivable account. It's handy to access this function here while you are allocating transactions for the Receivable account.

  • Go to Receivables > Allocate account transactions.

 

In the next screen:

  • Select the Receivable account required.
  • Click Write off small amount at the bottom right of the screen.

 

In the next screen, the balance for the account is displayed.


  • You may overwrite this amount if you wish to write off a different amount.
  • Select the General ledger account to write off to.
  • Click Create write off.

     

    A transaction will be created for the Receivable account.

    • Next, you should allocate the new write-off transactions to the Receivable account balance.

    • This can be done from the Receivable account > Transaction menu > Allocate Transactions.

    Return to Top of Page


    Global Write of Small Balances

    This allows you to write off small uneconomic balances for all Receivable accounts whose balance is below the value you select.

    • Go to Receivables > Write off small balances.
    • Select the General ledger account to write off balances to.
    • Enter the value to write off balances of that amount or below.
    • Click Save defaults if you would like to save these details for the future.
    • Click Write off small balances.

     

    A transaction will be created for each Receivable account that has had a small balance written off.

    • Next, you should allocate the new write-off transactions to each Receivable account balance. 
    • This can be done from the Receivable account > Select the Receivable account > Transaction menu > Allocate Transactions.

      Return to Top of Page


     

    Was this helpful? If you require further assistance, or would like to contact us about this article, please email us at support@lentune.com.

    Thank you. Your feedback is appreciated.

    Last updated: 6 December 2022