Writing Off an Account

Summary

This document describes the best way to write off an account in EngageIP.

Write-offs are an accounting strategy that allows for the reduction in value of an asset or as a means of removing bad debt from the financial records of the business. The use of a write-off is a task that can help a company maintain a more accurate inventory of the worth of current assets. This includes the amount of funds currently residing in the Accounts Receivable section of the financial records.

Write Off Process

1. Ensure there is a service setup called 'Write off'. If GL codes are in use, apply the correct GL codes to this service

2. Ensure that there is a Account Status Type (on the setup page) appropriately named, such as 'Canceled - Write Off'

3. Add a credit or transaction (charge) using the 'Write Off' service with a dollar value that will bring the account balance to zero

4. Finally, change the account status to 'Canceled - Write Off' (or whatever status you have designated for that). In the cancelation options select 'Immediately with NO transaction'

5. Click Save

Open

Open

Reports now can be filtered to include or exclude accounts with this status. Also, now that the balance is zero on the account, it will not affect totals going forward for debts uncollected on this user account.