Exercise - Create a write-off journal for a customer


In this exercise, you will set up the write-off parameters and write off a customer balance from the Aged balances page.

Set up the write-off parameters

  1. Go to Credit and Collections > Setup > Credit and collections parameters.
  2. Select the Collections tab.
  3. Expand or collapse the Write-off section.
  4. The Write-off journal is the general journal that will hold the write-off transactions that you create. You can attach a reason code to every write-off. The write-off account will be used as the expense account or reserve adjustment in the general journal.
  5. You can override this default at the time of the write-off. Set the Separate sales tax field to Yes if you want to separate the sales tax from the original transaction in the write-off.
  6. Close the page.

Write off a customer balance from the aged balances page

  1. Go to Credit and collections > Collections > Aged balances.
  2. Select the row for the customer that you want to write off. For example, select the line with Birch Company on it.
  3. On the Action Pane, select Collect.
  4. Select Write off.
  5. Select OK.
  6. Close the page.
  7. Go to General ledger > Journal entries > General journals.
  8. Select the journal batch number for the journal that contains your write-off.
  9. Note that one line is created to reverse the customer balance. One or more lines are created to post the write-off to the write-off account.
  10. Close all pages.