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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / How do I writeoff a pa...
Microsoft Dynamics GP (Archived)

How do I writeoff a payables transaction?

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Posted on by Milton Rawle Jr 145

I need to writeoff multiple vendor invoices that will not be paid by the new ownership. I do not want to lose the history of the invoices by deleting them out of the system. What I want to do is debit the accounts payable account and credit the writeoff account I have set up without creating a check (manual payment window). I believe I need to set up a writeoff type  in the payables transaction window but do not know how.

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  • L Vail Profile Picture
    L Vail 65,271 on at

    you can write off payables in the apply window, and I think you can run write-off routine on payable too, but I might be wrong on that. Someone will check it for sure.

    As far as the accounting, do you want this to change your new owner's general ledger?

  • L Vail Profile Picture
    L Vail 65,271 on at

    I just looked and the write of routine is not available for payables. Looks like you're back to the Apply. How many documents do you have?

  • Tim W Profile Picture
    Tim W 2,925 on at

    An interesting request, I think write-off (clearing a good of service provided that will not be paid) is a bit of a misnomer here, it's more of a write-up (clearing a liability that we are not going to pay), certainly not a standard system feature.  It's the guys who you are not going to pay who get to do the write-off.

    The way the system supports reversing AP transactions is by doing voids.  Assuming these are not paid yet you would void each individual transaction in the Void Open Payables Transaction window which does you the favor of reversing out the purchases account (expense account) associated with the voucher.  This is a handy feature if you were to decide a service was not provided after a voucher has been posted.  In addition to lowering your liability you will in turn lower the expense account the voucher was hitting so as to not overstate your expenses.

    Sounds like you might not want to lower that expense account balance, just not pay the AP. 

    In that case I would create a new checkbook, set your write-off account as the checkbook account (this will end up with credit balance unlike a standard write-off account) and do a check run selecting and paying all your 'do not pay' vouchers and washing them through this checkbook.  You would need to setup this same write off checkbook to do this process manually so seems easier to use a computer check run. 

     

    Hope that helps,

    Tim 

     

     

     

  • L Vail Profile Picture
    L Vail 65,271 on at

    Hmm, new checkbook. Sounds like a lot of trouble to write off an A/P transaction left on the books, but not assumed by the purchasing company.

    I don't think voiding the transaction will correctly reflect what happened. That is why there is a write-off feature in payables. Perhaps it wasn't an invoice that should be voided - we're just not going to pay it.

    Question unanswered is whether or not this transaction should impact the current books, or are we just trying to clean up the subsidiary ledger. There was an acquisition, if the liabilities were not assumed, I can see writing them off and being done with them. On the other hand, they could be valid invoices, but we aren't going to pay them either by agreement or court order.

    I'm guessing the vendor will not be sending us a credit memo.

    Kind regards,

    Leslie

  • Bradley Gehrls Profile Picture
    Bradley Gehrls on at

    Hello Milton,

    Thank you for using Microsoft Online Communities.  I understand that you would like to write off invoices in payables.  There is not a write off window like there is in Receivables Management but you can still do write offs in the Apply Payables Documents window.  You can select a payment mark the document you want to write off and enter the amount you want to write off.

    If you do not want to do to do it this way the other two options that I could think of is voiding the invoice or entering a Return type document.  This would prevent the invoices from staying in the open status and keeping it off the aged trial balance.

    If you have any other questions please let me know.

    Best regards,

    Brad G

    Microsoft Dynamics GP

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  • Verified answer
    Milton Rawle Jr Profile Picture
    Milton Rawle Jr 145 on at

    Let me try the writeoff option in Apply Payables Documents window and I will respond afterwards and let everyone know what happens. Thank you all!!

  • Milton Rawle Jr Profile Picture
    Milton Rawle Jr 145 on at

    I tried the Apply Payable Documents window but the invoices for the vendor will not show up. Now when I go into voiding open payables window the invoices show up. Which way shoud I go? I do not want to delete the invoice totally because of the history and the service was provided by the vendor. They just will not be paid for it.

  • Suggested answer
    L Vail Profile Picture
    L Vail 65,271 on at

    To use the Apply window, go into Edit Checks, bring up your vendor. Hit the apply button. All of the unpaid invoices will show up in that screen and there you can fill in the Write Off field. You do not need to put an amount on the Edit Checks window.

    Make sure your vendor is set to allow write offs. Set that up in the Vendor Options window; it's in the middle of the window with some other radio buttons.

    The apply menu off of the menu is used if you have already made a payment or issued a credit memo and have not yet applied it to a document.

    Kind regards,

    Leslie

  • Milton Rawle Jr Profile Picture
    Milton Rawle Jr 145 on at

    How do I post the entry? The post icon is not available for me right now.

  • Bradley Gehrls Profile Picture
    Bradley Gehrls on at

    Hello Milton,

    Thank you for the update.  I am not sure which way you are trying to write these invoices off?  If you go in the Apply Payables Document window and you select a payment or credit memo the list of invoices will show below.  From there you can enter the write off amounts for those invoices.  Once you have completed this process you click ok and the window will close.  Once the window closed you we receive the posting journals.  If you are not doing it this way please let me know.

    If you have any other questions please let me know.

    Best regards,

    Brad G

    Microsoft Dynamics GP

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