Write off a balance
Write off what an invoice will not collect, in full or in part, reverse it, and see what it changes for the invoice, the customer and reminders.
Write off a balance when you have stopped expecting an invoice to be paid, in full or in part. A write-off is not a payment: it lowers what the invoice can still collect, and it is reported as bad debt, never as money received.
Before you start#
Writing off and reversing need the write-off permission, which owners, admins and accountants have. Being able to edit an invoice or record a payment on it does not include being able to forgive it.
An invoice can be written off once it is issued and while something is still collectible on it. Drafts, quotations, and paid, void or cancelled invoices cannot.
Write off a balance#
- Open the invoice. The Balance card shows four figures: the invoice total, payments received, the amount written off, and what is still collectible.
- Choose Write off balance.
- Choose The whole remaining balance or Part of it, and enter the amount for a part.
- Set the Effective date. This is the day the write-off counts from in the Bad debt report. It cannot be before the invoice's issue date or in the future.
- Enter a Reason. It is required, and it is the only explanation the report will have later.
- Choose Review write-off. Bookmaker shows each figure before and after, and says what will happen.
- Confirm with Write off.
Nothing is changed until the last step. If a payment arrives while you are reviewing, "the whole remaining balance" writes off only what that payment left.
What a write-off changes, and what it does not#
| After a write-off | |
|---|---|
| Invoice total | Unchanged. The invoice still says what was invoiced. |
| Payments received | Unchanged. No payment is created. |
| Written off | Goes up by the amount. |
| Still collectible | Goes down by the amount. |
The status follows what is left to collect:
| What happened | The invoice shows |
|---|---|
| Everything collectible was written off, and nothing was ever paid | Settled with write-off, marked Written off in full |
| Part was paid and the rest written off | Settled with write-off, marked Part paid, rest written off |
| Part was written off and something is still collectible | Its usual status, marked Partially written off |
| A write-off was reversed and the amount is owed again | Its earlier status, marked Outstanding after reversal |
An invoice settled by a write-off never shows Paid. Paid means payments covered the total.
Reverse a write-off#
A write-off is never edited or deleted. To undo one, reverse it:
- In the invoice's Write-off history, choose Reverse write-off beside the entry.
- Check the Amount to reverse. It starts at everything of that write-off still in force; enter less to reverse part.
- Set the Effective date and enter a Reason.
- Confirm.
The amount becomes collectible again. Both entries stay in the history, each on its own date, so a write-off made in January and reversed in February appears in January's bad debt and the reversal in February's.
When a written-off invoice gets paid#
A payment and a write-off cannot both be counted against the same money. If you record a payment larger than what is still collectible on an invoice with a write-off, Record Payment says so and offers to do both steps together: it reverses exactly as much of the write-off as the payment needs, on the payment's date, and records the payment. You enter a reason for the reversal. This needs the write-off permission as well as the payments permission.
Editing a payment up into the written-off amount is refused. Reverse the write-off first, then edit the payment.
What else a write-off affects#
- The customer's copy. The invoice, its PDF and its public link show the payments actually received and, on a separate line labelled Adjustment, the amount written off, so the balance due adds up. The reason is internal and is never shown to the customer or put in an email.
- Payment reminders. Writing off the whole balance stops reminders for the invoice. After a partial write-off they continue for the reduced balance. After a reversal, at most one reminder is planned from that point; reminders whose moment passed while the balance was written off are not sent late.
- Editing the invoice. While part of an invoice is written off, its total and currency cannot be changed. Reverse the write-off, edit, and write off again.
- Voiding. An invoice with a write-off in force cannot be voided. Reverse the write-off first.
- Discarding. An invoice with a write-off on record cannot be discarded, even after the write-off is reversed.
See what was written off#
Reports › Bad debt lists every write-off and reversal by effective date, with the invoice, customer, amount, reason and who recorded it. See Run and export reports.
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