To Create a Write-Off When Processing a Payment

When you are processing a payment from a customer on the Payments and Applications (AR302000) form, you can create a balance write-off directly on this form if you want to write off some amount along with the payment application, or a credit write-off if the payment amount slightly exceeds the amount of the invoice being paid and you need to close both documents.

Before You Proceed

Make sure that write-offs are enabled and reason codes for balance and credit write-offs are configured on the Reason Codes (CS211000) form. For details, see Write-Off Setup.

To Create a Balance Write-Off

  1. Open the Payments and Applications (AR302000) form.
  2. Enter the payment document, as described in To Enter a Payment Document.
  3. On the Documents to Apply tab, in the row for the invoice that you want to pay with this payment, specify the following settings:
    • Amount Paid: The payment amount
    • Write-Off Amount: A positive value (for example, 0.5) that is the difference between the invoice amount and the payment amount
    • Write-Off Reason Code: Balance Write-Off
  4. On the form toolbar, click Save. The write-off amount you have entered is displayed in the Write-Off Amount box in the Summary area.
  5. To release both the payment and the application, click Release on the form toolbar.

After processing has completed successfully, you can view the batch on the Journal Transactions (GL301000) form.

To Create a Credit Write-Off

  1. Open the Payments and Applications (AR302000) form.
  2. Enter the payment document, as described in To Enter a Payment Document.
  3. On the Documents to Apply tab, in the row for the invoice that you want to pay with this payment, specify the following settings:
    • Amount Paid: The payment amount
    • Write-Off Amount: A negative value (for example, -1.50) that is the difference between the invoice amount and the payment amount
    • Write-Off Reason Code: Credit Write-Off
  4. On the form toolbar, click Save. The write-off amount you have entered is displayed in the Write-Off Amount box in the Summary area.
  5. To release both the payment and the application, click Release on the form toolbar.

After processing has completed successfully, you can view the batch on the Journal Transactions (GL301000) form.