Writing off an underpayment

An underpayment occurs when a customer sends you a payment to pay a debt in full, but the amount does not cover the amount of the debt. Instead of creating a debit memo for the remaining amount, you can mark the debt as paid in full and write off the remaining amount.

The amount you can write off is determined by these settings. You can write off the greater amount.

  • Cash Receipts Writeoff Limit in SA Operator Setup
  • Paid in Full Allowance Amount in SA Administrator Options-Customers-Cash Receipts
  1. Select Customer > Entry > Cash Receipt.
  2. Click OK to open a journal.
  3. Select the payment method in the Type field.
  4. Follow the instructions for the payment type until you are ready to apply the payment to the underpaid invoice.
  5. In the Invoices grid, select the invoice to be underpaid.
  6. Click Paid In Full.
  7. In the Apply Amount field, specify the amount to be applied to the invoice.
  8. Press Tab or Enter.
  9. On the Write-Off Distribution screen, specify the GL write-off account and amounts.
  10. Click OK.
  11. Repeat steps 5-10 for all invoices to be underpaid.
  12. If the proof amount is zero, click Finish to indicate that you are ready to update.
  13. Click Yes to update.
  14. If the proof amount is not zero, specify a reference and then click OK.
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