Automatically Writing Off Invoice Amounts

The Automatic Invoice Write Off utility allows you to determine by branch and customer how to write off minimal dollar amounts on invoices. For example, you decide to write off any amounts above a invoice ship date or below $1.00. The system creates a cash receipt for the invoices you want to write off.

Important: You can set a customer to be excluded from any invoice amount write off utility run. Use the Additional Info tab from the Credit Control Parameters window in Customer Maintenance and select Exclude from Automatic Write Off of Invoice.

You must have the AR.ADJUSTMENT.ALLOWED authorization key assigned to write off invoices automatically.

Note: This utility does not take the place of the regular over and short parameters that you have set up. You must have the sales tax, discount given, freight out, in addition to over and short cash receipts auto posting set up with a valid general ledger account.

To automatically write off invoice amounts:

From the A/R > Utilities menu, select Automatic Invoice Write Off to display the Automatic Cash Receipt Write Off window.
To write off a single invoice, enter or select that invoice in the Invoice # field. To write off multiple invoices at a time, leave this field blank.
If you enter a single invoice for write off, the information you enter in the Branch/Territory field and the Status field must match the branch and invoice status from the Header tab of the order for the system to find the correct invoice. The invoice is returned only if all the information matches.

If you are writing off multiple invoices, the utility groups invoices by bill-to customer before creating the write-off receipt.

In the Branch/Territory field, enter the branch or territory for which you want to automatically write off amounts on invoices.
In the Posting Branch Type field, enter the type of branch you want to apply: Ship Branch or Specific Branch. Selecting Specific Branch lets you enter a branch number in the Posting Branch field.
In the Posting Branch field, select either a branch number or branch type based on the entry in the Posting Branch Type field.
In the Invoices Older Than (days) field, enter the maximum number of days after which you want to write off the invoice. Use in conjunction with the Maximum Dollar Amount field.

For example, you want to write off all invoices past 120 days and less than $10.00. In the Invoices Older Than field enter 120. In the Maximum Dollar Amount field, enter 10. The system ignores negative amounts.

In the Write-off G/L Account field, select the account to which you want to apply the write off.

Important: The system uses the settings in the Automatic Write Off Setupcontrol maintenance record before any settings in this field. If this control maintenance record is blank, the system writes off all amounts to the selected G/L account on this driver window. In addition, if the system has a partial over payment on an invoice, the over payment is applied to the G/L account selected in the driver.

In the Status field, select the Invoice Status Code you want limit the write-off to. The system searches only invoices with that status to write off.
In the Maximum Dollar Amount field, enter the highest amount you want to write off for invoices. Use this in conjunction with the Invoices Older Than field.

Use the Exclude Service Charge check box if you want to eliminate services charges from the amount write off.
Use the Exclude Credits check box if you want to eliminate any credit invoices or invoices that have a credit balance.