Business Central Write Offs

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Posted on by ConsultantDawn

How do I Write off an amount in Business Central? See 2 scenario's below.

1. Customer has a $100.00 invoice and only pays $50.00, how do I write off the addition $50.00 remaining?

2. Write off full amount of the invoice or full Customer balance?

Version: CA Business Central 20.5

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Dynamics 365 Business Central

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IB-29041624-0 1,189 Moderator on at

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You post credit your customer ledger account and debit you income statement account for loss on customer ledgers.

Pretty much in the same way as you post a payment you just balance it against your income statement instead of your bank account.

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Amit Baru 3,043 on at

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Hi,

For this

Apply 50$ to Sales Invoice

for remaining sales invoice amount--> Post Sales Credit Memo

In this way remaining amount of Sales Invoice will goes zero.

Regards

Amit Sharma

www.erpconsultors.com

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IB-29041624-0 1,189 Moderator on at

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At least in my region, creating a credit memo for a customer ledger entry that should be written of is not complaint with the accounting laws / regulations. So please make sure it is a legal way of handling it before you chose that approach.

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YUN ZHU 101,414 Super User 2026 Season 1 on at

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Hi, I think systematically, there are two ways

1. Cancel the invoice of $100(Credit Memo) create a new one of $50, and then apply the payment.

2. Create a credit memo of $50, then use this Credit Memo and the payment to appy the invoice of $100.

Hope this helps as well.

Thanks.

ZHU

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ConsultantDawn 39 on at

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I just want to confirm how this should be entered in the system, please see below and let me know which if any of the options to post are correct.

1. Post the $50.00 payment and the $50.00 Credit Memo in the Cash Receipts Journal.

2.Post the $50.00 in the Cash Receipts Journal, then Go to the Sales Journal and post the $50.00 in the Sales Journal.

3. Post the $50.00 in the Cash Receipts Journal, then Create a Sales Credit memo for $50.00. Not sure if this type of Sales Credit memo will work as it reverses the Sales invoices lines and there for full invoice amount. I do not want to reverse the Invoice, the service was completed, I need to write off part of the invoice and in some cases the full invoice amount. If I remove the invoice lines from the Sales Credit memo, and add a line for the Bad Debt account, there is no way to then apply it to the original invoice.

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ConsultantDawn 39 on at

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I would to confirm how this should be entered in the system, please see below and let me know which if any of the options to post are correct.

1. Post the $50.00 payment and the $50.00 Credit Memo in the Cash Receipts Journal.

2.Post the $50.00 in the Cash Receipts Journal, then Go to the Sales Journal and post the $50.00 in the Sales Journal.

3. Post the $50.00 in the Cash Receipts Journal, then Create a Sales Credit memo for $50.00. Not sure if this type of Sales Credit memo will work as it reverses the Sales invoices lines and there for full invoice amount. I do not want to reverse the Invoice, the service was completed, I need to write off part of the invoice and in some cases the full invoice amount. If I remove the invoice lines from the Sales Credit memo, and add a line for the Bad Debt account, there is no way to then apply it to the original invoice.

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ploo 131 on at

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Hi all,

Thanks for the information on dealing with this.

For my case, the customer invoice amount is $1090. Paid $1,000. Write-off $90.

In the cash receipt journal,

line 1, line type=Payment, in applies-to, select the invoice and in the Amount To Apply column, enter $1,000. This amount defaults to the journal line as -$1,000.

Bal. Account is Bank

line 2, line type=Credit Memo, enter the difference of -$90 and in Applies-to, apply to the same invoice. Journal line Bal. Account is G/L Account for the bad debt w/o expense.

When posting these 2 lines, there will be 2 entries to the customer ledger to offset the invoice.

One entry to the bank account and another entry to the bad debt expense account.

cash_and_writeoff...
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AndrewThomas81 1,971 on at

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Create a credit memo for the difference, this ensures any tax implication is accounted for

Kind Regards

Andrew Thomas FCCA MCP
YouTube - Use Business Central
LinkedIn

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Gerardo Rentería Ga... 26,842 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

https://learn.microsoft.com/en-us/dynamics365/business-central/finance-payment-tolerance-and-payment-discount-tolerance

Solved: How to write off or remove small amounts on customer's accounts.

Best Regards
Gerardo

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Ahmad Subhani 703 on at

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Hi,

Create a credit memo of $50,

A Payment of $50,

When they both are applied to Invoice of $100 then it will be settled.

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