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How to use the Write Off Documents feature in Microsoft Dynamics GP

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This article describes how the Write Off Documents feature works.

Applies to:   Microsoft Dynamics GP
Original KB number:   887948

Introduction

When a customer overpays or underpays, you can use the Write Off Documents feature in Microsoft Dynamics GP to create a credit memo or a debit memo that will be applied to the document that you're writing off. Examples of different scenarios are provided. The posting accounts that are used can come either from Customer Account Maintenance or from Posting Account Setup.

More information

You can use the Write Off Documents feature to write off outstanding credit or debit balance amounts for one or more customers. To use this feature, use the appropriate method:

  • In Microsoft Dynamics GP 10.0, select Tools on the Microsoft Dynamics GP menu, point to Routines, point to Sales, and then select Write Off Documents.
  • In Microsoft Dynamics GP 9.0, select Tools, point to Routines, select Sales, and then select Write Off Documents.

In the Write Off Documents window, you can specify a write-off limit and a cut-off date, and you can also specify whether to create one credit or debit memo for each customer or document. The debit or credit memos that you create will be posted and applied to the documents that you're writing off balances for.

You can use the Write-off Limit field in the Write Off Documents window to enter the maximum outstanding balance for documents that are to be included in the write-off. Documents that have an outstanding balance that is less than or equal to the write-off limit that you enter will be included.

To enter the maximum amount that you can write off for a customer, use the Maximum Write-off box in the Customer Maintenance Options window. To open the Customer Maintenance Options window, select Cards, select Sales, select Customer, and then select Options.

Examples

  1. Customer A has a Maximum Write-off Amount of $2.00 in the Customer Maintenance Options window. An invoice was posted for $1.90. No payments have been applied to this invoice. You want to write off the whole document. To do it, enter a write-off limit that is more than or equal to $1.90 when you process underpayments in the Write Off Document window.

  2. Customer A has a Maximum Write-off Amount of $1.00 in the Customer Maintenance Options window. An invoice was posted for $1.90. No payments have been applied to this invoice. You want to write off the whole document. To do it, adjust the Maximum Write-off Amount in the Customer Maintenance window because the $1.90 invoice exceeds the current maximum of $1.00.

  3. Customer A has a Maximum Write-off Amount of $2.00 in the Customer Maintenance Options window. An invoice was posted for $1.90. A payment for $2.00 was received from the customer and was applied to this invoice. You want to write off the amount that remains on the payment. To do it, enter a write-off limit that is more than or equal to $0.10 when you process overpayments in the Write Off Document window.

Posting Accounts

The posting accounts for write-offs default first from the Customer Maintenance Accounts window. To open this window, select Cards, select Sales, select Customer, and then select Accounts. If the posting account that is listed in the Write-offs field is blank, the system looks next to the Posting Account Setup window for the Sales Series. To open the Posting Account Setup, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Posting, and then select Posting Accounts. The two headings that are used are either Write-offs, for underpayments, or Overpayment Write-offs, for overpayments.