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

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Posted on by CU13081138-0

Hi,

Please could you show me how to write off small amounts of a few £’s or pence on customer’s accounts? For example, if they didn’t pay enough and left a small balance on the account that we would like to remove.

Can you please guide me through a step-by-step process to write off or remove the amount on customer’s accounts?

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Dynamics 365 Business Central

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Valentin Castravet 31,485 Super User 2025 Season 2 on at

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You can use either the general journal or the cash receipt journal. Debit the customer and credit a write-off GL account as the balancing account, then apply this entry to the invoice that hasn't been fully paid off.

In the future, you can set up and use the payment tolerance functionality, which will automatically post the write-off amount when a payment is applied to an invoice that isn’t fully covered. More information can be found here - Payment tolerance and payment discount tolerance - Business Central | Microsoft Learn

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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Suresh Kulla 50,247 Super User 2025 Season 2 on at

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Please check the below link

https://stoneridgesoftware.com/leveraging-payment-tolerance-in-business-central-to-manage-small-dollar-balances/

Thanks

Suresh

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Jun Wang 8,202 Super User 2025 Season 2 on at

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Here is a video for your reference on how how to write off account receivable.

https://youtu.be/-v8FjJ1plgw

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YUN ZHU 95,748 Super User 2025 Season 2 on at

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First of all, this amount cannot disappear out of thin air.
You still need to apply it in the normal way. For example, if these balances are Invoices, you need to create a Credit Memo or Payment to apply it.

Hope this helps as well.

Thanks.

ZHU

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Yi Yong 2,581 Super User 2025 Season 2 on at

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Hello,

You can use 'Payment Tolerance' function to automatically write-off the few £ off the customer's invoice if they didnt pay enough.

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

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Khushbu Rajvi. 20,647 Super User 2025 Season 2 on at

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Hope this help as well : https://community.dynamics.com/blogs/post/?postid=59540c7b-20f4-45ce-ade8-c254e555b754

https://learn.microsoft.com/en-us/dynamics365/finance/accounts-receivable/tasks/create-write-off-journal-customer

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Valentin Castravet 31,485 Super User 2025 Season 2 on at

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It disappears out of thin air to a write-off account in the GL, its a standard practice in accounting :)

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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