Payments with Write-Off: General Information

In MYOB Advanced, when you receive a customer payment, you enter the payment document by using the Payments and Applications (AR302000) form. In the payment, you specify the customer from which you have received the payment, the cash account to which the payment amount should be recorded, the payment amount, and the payment method. The payment method denotes the actual means of payment: cash, printed check, or wire transfer. You can then apply the payment you created to an invoice (or multiple invoices) of the customer.

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn how to do the following:

  • Enter a payment
  • Apply the payment to any number of AR invoices
  • Create a credit write-off as you are processing the payment
  • Release the payment and the payment’s application to the AR invoices

Applicable Scenarios

You can manually create a payment in the system if you have received a payment from a customer and want to apply it to an outstanding invoice of this customer (or multiple invoices).

When processing a payment from a customer, you can create the following types of write-offs, if needed:

  • Balance write-off: To write off some amount along with the payment application.
  • Credit write-off: If the payment amount slightly exceeds the amount of the invoice being paid and you need to close both documents. (This scenario is described in Payments with Write-Off: Process Activity.)

Workflow of Creating a Payment with a Write-Off

The following diagram illustrates the process of creating a payment with a credit write off.

Figure 1. Payment processing with a credit write-off


The following diagram illustrates the process of creating a payment with a balance write off.

Figure 2. Payment processing with a balance write-off