A write-off clears an uncollectable balance from AR and books it as a loss. Use it when you have accepted the money is not coming and you are not charging it back to the client.
Write-off or chargeback?
- Chargeback – you take the invoice back off the client. Their cash reserve absorbs it.
- Write-off – the factor absorbs the loss. It leaves AR and posts to the Write Offs ledger as an expense.
The mechanics are nearly identical, so it is worth being deliberate about which one you are doing.
Applying a write-off
- In the left-hand menu, click Write Offs. Choose the Invoices, Over Advances or Fuel Advances tab.
- Search or filter to find what you are writing off. The list shows invoice amount, balance, and how many days aged and outstanding.
- Tick the items, then click View in the panel on the right. Each item defaults to its full balance.
- For a partial write-off, choose Part and edit the amount.
- Check the totals at the bottom, then click Proceed and confirm.
Before you confirm
A write-off cannot be reversed. Check the invoice numbers and amounts in the right-hand panel first. If you write off the wrong invoice, the only route back is a manual transaction.
You also need the write-off permission on your role – without it the action is refused.
Where it shows up
Written-off amounts post to the Write Offs ledger, which you will find under Ledgers › More. They appear as an expense, and feed the Accounting screen for the period.
Related articles
- How to Apply a Chargeback
- How to Create a Manual Transaction