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Performing a Write-Off

You can write off outstanding unpaid amounts on invoices. A write-off allows you to reduce the outstanding amount on an open invoice or bill, in the event that you are not able to reclaim the outstanding amount.

Caution: Write-offs are not supported for use with Xero or QuickBooks.

Note: You might consider creating a dedicated general ledger account to capture write-off amounts. It's suggested you create one for fees and another for disbursements. See Adding a General Ledger Account to learn more.

 

Creating a Write-off

To create a write-off:

  1. In Practice Management, click the global Create button and choose Invoice Write Off / Bill Write Off from the Billing section. (You may need to click Show all if you don't see this option.) The New Invoice / Bill Write-Off window appears.
  2. Complete the following information:
    • Write-off by: Click the first drop-down list and choose from the following options:
      • Matter: If you select this option, 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 invoices associated with that matter that have outstanding amounts.
      • Invoice / Bill: If you select this option, you'll be asked to select a specific invoice / bill number, and the write-off will only be made against that one invoice.
      • Client / Customer: If you select this option, 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 invoices associated with that client that have outstanding amounts.
    • Date: Enter the date the write-off should be applied.
    • Amount: Enter the amount of the write-off.
    • Fees Account: Click this drop-down list to choose the GL account to use when posting the fee write-off GL entries (if any) for the accrual Invoice. When Auto is selected, it will auto-allocate based on the GL accounts from the invoice.
    • Exp. Account / Disb. Account: Click this drop-down list to select the GL account to use when posting the disbursement write-off GL entries (if any) for the accrual Invoice. When Auto is selected, it will auto-allocate based on the GL accounts from the invoice.
    • Memo: Enter a file note in relation to the write-off or use the Quick-code drop-down list to apply a saved memo.
  3. Based on your selections in Step 2, review the information in the list below:
    • Inv No.: This shows the invoice number that you are writing off—partially or in full.  (You can click the link to view the full invoice.)
    • Matter: This shows the matter name and number. (You can click the link to view the matter.)
    • AR Date: This shows the accounts receivable date of the invoice.
    • Outstanding: This shows the amount outstanding on the invoice.
    • Write-Off: This shows the amount that you want to write off.
  4. In the Write-Off column, enter the amount you want to write off. You can either enter the number directly in the field, or click the arrow next to the Outstanding amount to copy the full amount for write-off.
  5. Optionally, click the Edit icon next to the write-off amount to adjust how the write-off fees will be allocated. 
  6. Click Save to save your changes and process the write-off and apply it to the selected bills.

 

Viewing Lists and Reports of Your Write-Offs

Practice Management provides an official Invoice Write-Off Report which shows any write-offs that have been made.

You can also find matter-specific write-offs by viewing the matter, clicking the Billing menu icon, and then clicking Payments & write-offs.

Finally, you can export a list of write-offs to Microsoft Excel by going to Billing > Bills List. This creates a list of every invoice in your system (which includes write-offs). You can then click the More drop-down list and choose Export. You can group write-offs in the list by clicking the Write-Off column heading, either before or after you export. (This sorts and groups the data.)

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