About the AR Automatic Write-Off Form

Use the AR Automatic Write-Off form to write off account balances, invoice balances, and finance charges that are considered uncollectible.

You can access this form by selecting File > Auto WriteOff Process from the AR Invoice Entry form.

Use the Use Date or Days Older Than and Write Off Transaction Filter sections to restrict the transactions included in the write-off process. For specific information about each option in these sections, see the F1 help.

Write-Off Type

The Write Off Type determines whether you will be writing off finance charges, invoice balances, or account balances. If you are writing off finance charges, the system enables two additional check boxes that control how finance charges are written off. These check boxes are discussed below.

  • FC By (%), Apply to All Lines – When you select this check box, system multiplies the specified FC Amount or FC Percentage value against each line of the invoice equally. The system bases the write off amount for each line on the line's amount and the percentage.

    For example, with a FC Amount or FC Percentage of 50.00, the write-off amounts for each line are calculated as follows:

    FC Due

    Write-Off Amount

    Line #1

    36.00

    18.00 (36.00 x 50.00)

    Line #2

    27.00

    13.50 (27.00 x 50.00)

    Line #3

    42.00

    21.00 (42.00 x 50.00)

  • FC By (%), Amt Applied Starting at Line 1 – When you select this check box, the system multiplies the FC Amount or FC Percentage value against the total remaining finance charge amount for the invoice to determine the dollar amount to be written off against each line. The system distributes the write-off amount beginning with line #1 and progressing to each successive line until the specified amount has been distributed in full. Remaining lines are left untouched.

    For example, with a FC Amount or FC Percentage of 50.00, the write-off amounts for each line are calculated as follows:

    FC Due

    Write-Off Amount

    Applied

    Line #1

    36.00

    36.00

    Line #2

    27.00

    52.50 (105.00 x 50.00)

    16.50

    Line #3

    42.00

    0.00

If you do not use either of the FC By (%).. check boxes, the system handles the finance charge write-off process as follows:

  • If the FC Amount or FC Percentage value is 0.00, the system sums the finance charges for each line. If there is a finance charge due for the line, the system compares the finance charge due with the line's actual amount due (less retainage), and creates a write-off transaction for each line either equal to the finance charge due or the line's actual amount due, whichever is less.
  • If the FC Amount or FC Percentage value is greater than 0.00, the system distributes the write-off amount to each line beginning with line #1 and progressing to each successive line until the specified write-off amount is fully applied. Remaining lines are left untouched.

If you are writing off invoice balances, the system uses the Balances Less Than amount to determine which balances to write off. Any positive or negative invoices with a total due (including retainage) less than this amount are written off. For example, if you are writing off by invoice balance and you specify Balances Less Than $25.00, the system writes off any invoice with a balance between -$25.00 and $25.00.

Invoice #

Balance

Write-Off?

1001

$15.00

Y

1002

-$12.50

Y

1003

-$35.00

N

Note: Although you can specify a range of invoices to write off, it is recommended that you specify a single invoice. This will ensure that the system writes off only the invoices that you want. Performing this on a range of invoices may inadvertently cause an invoice to be written off that should not have been.

The same applies when writing off account balances, except that the process applies to the overall account balance. In this case, the system sums all invoices for the customer having a transaction date older than the days / date specified. If the sum of all applicable invoices is less than or equal to the Balances Less Than amount, the system cycles through those invoices and applies a write-off transaction against any lines that are not paid in full.

Note: This feature may be useful after writing off individual invoices to catch small remaining unapplied balances. In addition, this is the only option that includes/writes-off “Payment On-Account” transactions.

Once the system generates the write-off transactions, they are available in AR Invoice Entry for review and limited editing, and can be processed as normal.