In this article, you will learn how to write-off outstanding amounts on bills under Enhanced Billing Mode (EBM).
A write-off allows you to reduce the outstanding amount on an open invoice/bill, in the event that a client is unable to pay the balance. To create a write-off, click on the 'Global Create Button' , click 'Show all...' if the menu isn't already expanded, and select 'Write-off' from the 'Billing' section.
Processing a Write-off
The write-off menu is very similar to the Client Receipt menu, and that is because it behaves in a similar way - the only difference is that the amount owing will simply be reduced without any corresponding fees. Instead, the ledger entries will allocate this amount as an expense. If you would like to create a dedicated account to capture these write-off amounts, please see this article for more information on creating a new ledger account.
As with client receipts, you are able to specify whether you are applying the write-off by matter, invoice or client. The total amount of the write-off can be apportioned between the bills it is being applied to.
Write-off by Matter
If you select 'Matter' from the drop-down menu shown above, you'll be asked to select a matter from the adjacent drop-down field. Choosing a matter will then populate the section underneath with a list of any bills associated to that matter that have outstanding amounts.
Write-off by Bill/Invoice
If you select 'Invoice' from the drop-down menu shown above, you'll be asked to select a specific bill, and the payment will be only be made against that one bill.
Write-off by Client
If you select 'Client' from the drop-down menu shown above, you'll be asked to select a client from the adjacent drop-down field. Choosing a client will then populate the section underneath with a list of any bills associated to that client that have outstanding amounts.
When you are satisfied with your settings, click on the 'Save' button to process the write-off and apply it against the selected bills.