How to Write Off Receivables Documents in Microsoft Dynamics GP

This blog post elaborates on a Microsoft Dynamics GP Support article and provides detailed instructions on how to use the write off receivables documents feature in Dynamics GP (Great Plains).

You can use the Write Off Documents feature in Microsoft Dynamics GP to create a credit memo or a debit memo that will be applied to the document being written off when a customer overpays or underpays.

In the Write Off Documents window, a write-off limit and cut-off date can be specified. You can also select whether to create a credit or debit memo for each customer or document. The debit and credit memos that you create will be posted and applied to the documents that are being written off.

You can use the Writeoff Limit field in this window to enter the maximum outstanding balance for documents that are to be included in the write-off. Documents that have an outstanding balance less or equal to the write-off limit entered will be included.

Use the Maximum Writeoff box in the Customer Maintenance Options window to enter the maximum amount you can write off for a customer.

Examples of some scenarios may include:

• Customer A has a Maximum Write-off Amount of $5.00 in the Customer Maintenance Options window. An invoice was posted for $4.95. No payments have been applied to this invoice. You want to write off the whole document. To do this, enter a write-off limit that is more than or equal to $4.95 when you process underpayments in the Write Off Document window.
• Customer B has a Maximum Write-off Amount of $5.00 in the Customer Maintenance Options window. An invoice was posted for $5.90. No payments have been applied to this invoice. You want to write off the whole document. To do this, adjust the Maximum Write-off Amount in the Customer Maintenance window because the $5.90 invoice exceeds the current maximum of $5.00.
• Customer C has a Maximum Write-off Amount of $5.00 in the Customer Maintenance Options window. An invoice was posted for $4.95. A payment for $5.00 was received from the customer and was applied to this invoice. You want to write off the amount that remains. To do this, enter a write-off limit that is more than or equal to $0.05 (five cents) when you process overpayments in the Write Off Document window.

To use this feature, navigate to Tools >> Routines >> Sales >> Write Off Documents

1. Writeoff Type – Select Overpayments or Underpayments

2. Create One Writeoff per – Select Customer or Document

3. Writeoff Limit – Enter a write-off amount

4. Cut-off Date – Enter a cutoff date for documents to be included. Documents with a document date on or before the cutoff date will be included.

5. Customers – Enter or select a range of customers by Customer ID, Name, Class ID, or Type

6. National Accounts – If applicable, choose to create the write-off from the Parent or Child

7. Click Preview – Always preview the documents to be written off prior to processing

8. In the Write Off Preview window, click the amount link in the Writeoff Amount column

9. In the Write Off Details window, mark the documents you wish to write off and click OK to return to the Write Off Preview window

10. Click OK in the Write Off Preview window to return to the Write Off Documents window and click Process

11. Note: The write-off amounts will be distributed to the account defined on the customer card. If this is blank, the write-off will distribute to the default posting account setup under Tools >> Setup >> Posting >> Posting Accounts for Sales. If the default posting account is blank, GP will create the GL journal entry that cannot be posted until a distribution account is selected for the write-off amount.

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