Write off a supplier account

Find this screen

Open: Suppliers > Payment Control > Write Off Supplier.

How to

Write off an account

Open: Suppliers > Payment Control > Write Off Supplier.

1. Select the supplier account using the Code, Postcode, or Short Name drop-down lists.

2. Enter the amount that you want to write off in the Goods value field.

   The remaining account balance is written off as VAT and shown in the VAT value box.

   If you don't want to include a VAT element, enter the full account balance here.

3. Choose the nominal account to post the VAT element of the write off to.

   Your VAT Input default nominal account is selected by default.

4. If required, select a Transaction Analysis code for the write off transaction.

5. Click Write Off.

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Useful info

When to write off a supplier account

This writes off the entire debt on a supplier account and set its balance to zero. This is something you'd normally only want to do when you have ceased trading with the supplier.

While writing off the entire balance you can specify an amount of VAT to write off. This will affect the balance of your VAT nominal accounts on your Balance Sheet but will not affect your VAT Return.

Tip: Once you've written off the account balance, if you want to make sure that no further transactions are posted to this supplier account, put the account On Hold using the Amend Account Status screen.

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What happens when

An account is written off?

• A credit note is with a reference of ACCWRTOFF is created and posted to the following nominal accounts:

  Nominal Account	Debit	Credit
  Creditors Control (Balance sheet)	Account Balance
  VAT input (Balance sheet)		Remaining balance (VAT amount)
  Bad Debt Write Off (Profit and Loss)		Goods (Net) Value

  Note:

  If you have specified a cost centre and department for the default sales nominal account on your supplier's account, you must create a nominal account for bad debts with the same cost centre and department.

  For example, if a supplier has a default purchase account of 5000 MAN, the transaction is posted to the Bad Debt Expense account 9101 MAN on the P & L. If there is no bad debt nominal account with the relevant CC or CC / Dept combination, then this is posted to the suspense account.

• The credit note is allocated to the invoice.
• The supplier's account balance is updated.