Manually Write Off Customer Payment Difference

This instruction explains how you manually write off differences between a customer payment and the original customer invoice record(s).

The write-off is done in two steps:

Outcome

Payment differences are accepted written off and recorded. An accounting journal and a customer payment journal are printed. For write-offs on customer/payer level, a customer invoice journal is printed for the separate write-off invoice record that is created as well.

Review the write-offs in one of these ways:

Accounts receivable and the general ledger are updated. The transaction tables below are based on an example where you have a customer invoice of USD 1,000 but receive a payment of USD 800:

If the write-off is applied to a specific invoice, these account entries are created:

Accounting Rule

Account

Debit

Credit

*

Customer

 

800

 

Bank

800

 

*

Customer (amount written off)

 

200

 

Write-off (account specified in the accounting option used)

200

 

*Account entry based on the customer invoice.

If the write-off is applied to the customer instead, these account entries are created:

Accounting Rule

Account

Debit

Credit

*

Customer

 

1,000

 

Bank

800

 

*

Customer (amount written off)

 

200

 

Write-off (account specified in the accounting option used)

200

 

*

Customer

200

 

*Account entry based on the customer invoice.

The internal credit invoice record for the write-off that is created in this case is automatically offset.

Before you start

Follow These Steps

  1. Enter a payment directly in 'Payment Received. Record' (ARS110/E) or via 'Journal Voucher. Open for Multi-Entry' (GLS105) or 'Payment Document. Enter' (ARS105).

  2. In (ARS110/F), select a sorting order to identify the invoice records, when necessary:

    • 1 = Payer
    • 2 = Customer
    • 3 = Invoice number
    • 4 = Quick entry
    • 5 = Group invoice
    • 6 = Payer, sorted by due date.
  3. Select one of these alternatives:

    • Method 1: create a write-off applied to a specific invoice
    • Method 2: create a general write-off applied to a specific customer

Method 1: Apply Write-off to Specific Invoice

  1. In (ARS110/F), select option 11 = 'Partial payment' for the invoice to which the payment should be allocated.

  2. On the H panel, enter the amount received in the 'Partial payment amount' field. Press Enter.

  3. Back to the F panel, select the user-defined accounting option for customer write-offs for the invoice.

    The options are listed by pressing F4 in the field to the right of the exchange rate in the header.

  4. On the G panel, review and change the proposed values, when necessary: Accounting string, amount, VAT code, quantity, voucher text. Press Enter to return to the F panel, where the invoice is displayed as fully paid.

  5. Continue to Finish Write-off.

Method 2: Create General Write-off Related to Customer

  1. Select option 1 = 'Full payment' for the invoice(s) to which the payment should be allocated.

    The invoiced amount is reduced by the amount entered and recorded according to the pre-defined accounting option. The remaining payment difference is displayed in the header.

  2. Enter the user-defined accounting option for manual write-offs in the field to the right of the exchange rate in the head of the panel.

  3. On the G panel, review and change the proposed values, when necessary: Accounting string, amount, VAT code, quantity, voucher text. Press Enter to return to the F panel.

Finish Write-off

  1. Repeat the steps above until the entire total to be processed is allocated and adjusted.

  2. To end, press F3 to assign a voucher number to the voucher.

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