Business Central Write Offs

(0) Share

Report

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

Categories:

Financial Management

Sales

Other

All responses (6)

Answers (1)

ConsultantDawn 19 on at

Like (0)

Report

RE: Business Central Write Offs

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.
ConsultantDawn 19 on at

Like (0)

Report

RE: Business Central Write Offs

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.
Suggested answer

YUN ZHU 69,510 Super User 2024 Season 2 on at

Like (0)

Report

RE: Business Central Write Offs

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
Suggested answer

Inge M. Bruvik 32,744 Moderator on at

Like (0)

Report

RE: Business Central Write Offs

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.
Verified answer

Amit Baru 3,025 on at

Like (0)

Report

RE: Business Central Write Offs

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
Suggested answer

Inge M. Bruvik 32,744 Moderator on at

Like (0)

Report

RE: Business Central Write Offs

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.