Occasionally there will be small amounts left on a customer or supplier account that you want to write off. These amounts could be caused by:
- Rounding or other calculation discrepancies, or
- Are such a small amount it is easier to write it off. You've decided not to chase your customer for payment or your supplier is not chasing you.
What you can write off
Up to 50,000 records are displayed at once and you can write off up to 1000 invoices at once. If you need to write off more than 1000 you'll need to repeat the write off process. You can write off a sales value even if its associated transaction is part allocated.
The default maximum transaction value to write off is 200 (base currency) but you can amend this amount if required.
When writing off values on a foreign currency customer account, the exchange rate applied to the original transaction is used to convert the value to base currency.
Specify how much VAT is written off
If you include a VAT amount here this does not affect your VAT Return. The VAT amount is posted to your VAT Input or VAT Output nominal account.
For a part paid invoice, you must work out what proportion of the outstanding amount is VAT. For example, If you are writing off 50% of the invoice value, then you might also write off 50% of the VAT value.
If you are writing off customer transactions and want to reclaim any VAT that you've paid to HMRC, you do this using the Write off Customer Debt screen
See Dealing with customer bad debt.
Are you ready to write off small amounts from your customer accounts?
When you write off small amounts Sage 200 posts transactions to a number of nominal accounts. One of these is the nominal account assigned as the default for Bad Debt Write Offs.
This default nominal account must be assigned or Sage 200 will post the transactions to suspense.
What do you want to do
Write off small amounts from customer accounts
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