How to use the Write-off, Refunds and Returns wizard

Use this option to create a credit and refund the value of a paid invoice. For example, if you return goods and receive a full refund.

Customers

This posts a sales credit to reverse the effects of the original invoice and a sales payment to correct the balance on your bank. The sales payment allocates automatically to the sales credit. 

This example is for a sales invoice for £/€60.00 including VAT.

Original transactions

Transaction posted by the wizard

Suppliers

This posts a purchase credit to reverse the effects of the original invoice and a purchase receipt to correct the balance on your bank. The purchase receipt allocates automatically to the purchase credit. 

This example is for a purchase invoice for £/€60.00 including VAT.

Original transactions

Transaction posted by the wizard

NOTE: If you're using the VAT Cash Accounting scheme, the transactions post using the same tax code as the original transactions.

Use this option for cheques returned from your bank, marked 'Refer to Drawer' or for bounced cheques.

Customers

This routine posts a sales payment to the customer's account to show an outstanding balance and reduce the bank balance.

This example is for a sales receipt for £/€60.00.

Original transactions

Transaction posted by the wizard

Suppliers

This routine posts a purchase receipt to the supplier's account to show an outstanding balance and increase the bank balance.

This example is for a purchase payment for £/€60.00.

Original transactions

Transaction posted by the wizard

NOTE: If you're using the VAT Cash Accounting scheme, the transactions post using the same tax code as the original transactions.

Use this option when an outstanding credit remains on the account. You then need to issue a refund or receive one instead of allocating it to a future invoice.

Customers

This routine posts a sales payment to the customer's account to show an outstanding balance and reduce the bank balance.

This example is for £/€60.00.

Original transactions

Transactions posted by the wizard

Suppliers

This routine posts a purchase receipt to the supplier's account to show an outstanding balance and increase the bank balance.

This example is for £/€60.00.

Original transactions

Transactions posted by the wizard

NOTE: If you're using the VAT Cash Accounting scheme, the transactions post using the same tax code as the original transactions.

Use this option when you've paid or received a cheque that remains outstanding. You either need to be return the amount to the customer or receive the amount from the supplier.

Customers

This routine posts a sales payment to correct the balance on the customer's account and to reduce the bank balance. The sales payment allocates automatically to the sales payment on account.

This example is for a payment on account for £/€60.00.

Original transaction

Transaction posted by the wizard

Suppliers

This routine posts a purchase receipt to correct the balance on the supplier's account and the bank balance. The purchase receipt allocates automatically to the purchase payment on account. 

This example is for a payment on account for £/€60.00.

Original transaction

Transaction posted by the wizard

NOTE: If you're using the VAT Cash Accounting scheme, the transactions post using the same tax code as the original transactions.

NOTE: The write-off wizard doesn't account for VAT. Therefore, all automatic transactions post with the non-vatable tax code, T9 by default.

Use this option when you need to write off an entire account. For example, the company has ceased trading and there will be no further activity on the account.
 NOTE: You can't use this option to write off accounts in a foreign currency.  

Customers

This routine allocates together all outstanding transactions on the customer's account.

NOTE: Regardless of which transactions you select in the wizard, it writes off all the transactions on the customer's account.

Original transactions example

Suppliers

This routine allocates together the outstanding transactions on the supplier's account. It raises either a purchase invoice or a purchase credit to the Bad Debt Write Off nominal code. This either reduces or increases the supplier's account balance to zero.

For example:

NOTE: Regardless of which transactions you select in the wizard, it writes off all the transactions on the supplier's account.

Original transactions example

Use this option to write off outstanding invoice transactions, either individually or in batches. For example, when your customer won't pay one or more invoices, or you won't pay your supplier for one or more invoices. This could be due to a dispute.

NOTE: The write-off wizard doesn't account for VAT. This means that all the automatic transactions post with the non-vatable tax code, T9 by default.

NOTE: You can't use this option to write off foreign currency transactions.

Customers

For each selected invoice selected, this routine posts a sales credit to the Bad Debt nominal code. It also automatically allocates it to the original outstanding sales invoice. 

Original transactions example

Transactions posted by the wizard

Suppliers

This routine posts a purchase credit to the Bad Debt nominal code for each invoice you select. It also automatically allocates it to the original outstanding purchase invoice. 

Original transactions example

Transactions posted by the wizard

Use this option to write off invoice amounts up to a specified amount. Enter the value to display all outstanding invoices below that value to select from.

NOTE: The write-off wizard doesn't account for VAT. Therefore, all the automatic transactions post with the non-vatable tax code, T9 by default.

NOTE: You can't use this option to write-off foreign currency transactions.

Customers

This routine displays all outstanding sales invoices below the specified value and then raises a sales credit for each invoice selected from the list. The sales credit allocates automatically to the sales invoice.

Outstanding transactions for example

Transactions posted by the wizard

Suppliers

This routine displays all outstanding purchase invoices below the specified value, and then raises a purchase credit for each invoice selected from the list. The purchase credit allocates automatically to the purchase invoice. 

Original transactions example

Transactions posted by the wizard

Use this option to write off overpayments that exceed the original invoice value or are payments on account. The maximum value you can specify is £/€99.99.

NOTE: The write-off wizard doesn't account for VAT. Therefore, all the automatic transactions post with the non-vatable tax code, T9 by default.

NOTE: You can't use this option to write off foreign currency transactions.

Customers

This routine lists all sales payments on account below the specified value and creates a sales invoice for each payment. The sales invoice allocates automatically to the sales payment on account. 

Original transactions example

Transactions posted by the wizard

Suppliers

This routine lists all purchase payments on account below the specified value and creates a purchase invoice for each payment. The purchase invoice allocates automatically to the purchase payment on account. 

Original transactions example

Transactions posted by the wizard