Selecting this option to will flag the applied payment as a write off. This commonly used to clear bad debt accounts.

 

•When write-offs are applied to an account, a check number is not required.

 

• Payments made using this method will carry a reference of WRT-OFF.

 

•The payment amount will not be included in the batch total.

 

•The Cash Receipts report will include a separate column listing the write-off amounts.

 

•The Deposit Slip will not list the transactions since no monies were actually received.

 

•When applying a write-off receipt, The A/R general ledger account will be credited (reduced) and the Write-Off general ledger account will be debited (increased).