Write off supplier account

To write off supplier accounts

Open: Purchase Ledger > Purchase Accounts > Write Off Account.

1. Select the supplier account you want to write off.
2. Enter the goods value you want to write off. The VAT value is automatically calculated.
3. Select the nominal account you want to use to write off the VAT element of the balance.

If you are using cost centre breakdown for your balance sheet postings, only the account number reference needs to be specified for the VAT write off account. The necessary cost centre and department codes are attached automatically from the account header record.

Note: You choose to use cost centre breakdown for balance sheet postings in Accounting System Manager Operational settings tab.

If you are not using cost centre breakdown for balance sheet postings, you must specify the full nominal account for VAT write offs, including cost centre and department codes.

Example

If your nominal accounts are set up as follows (the first three accounts listed below are set up in default nominal accounts, and the fourth is set up on the supplier account record):
	Default bad debt write off		68100			(profit and loss)
	Default VAT input		15100	ADM	ADM	(balance sheet)
	Creditors control		25100	ADM	ADM	(balance sheet)
	Default nominal code		44100	FAC	STD
If you write off a supplier account transaction for the following value (with the standard VAT rate set to 17.5%):
	Net	10000.00
	VAT	1750.00
	Gross	11750.00
The nominal posting results will be as follows:
	If cost centre breakdown is not selected
	Bad debt write off	Cr	10000.00	68100	FAC	STD
	Default input VAT	Cr	1750.00	15100	ADM	ADM
	Creditors control	Dr	11750.00	25100	ADM	ADM
	If cost centre breakdown is selected
	Bad debt write off	Cr	10000.00	68100	FAC	STD
	Default input VAT	Cr	1750.00	15100	FAC	STD
	Creditors control	Dr	11750.00	25100	FAC	STD
Note: The nominal accounts specified must exist in the Nominal Ledger.

4. Enter the transactional analysis code if required.

   Note: You must have selected to Allow additional transactional analysis in the Purchase Ledger settings Options tab, and defined the codes in Accounting System Manager Transaction Analysis Codes option.

5. To set the account balance to zero, click Write Off.