Write off an uncollectible invoice balance

Use Write off balance when a valid invoice balance is genuinely uncollectible. A price concession, returned sale, or incorrect invoice may instead need a credit memo or correction.

Before writing it off

Check that all real payments and credits are applied first. Confirm the remaining balance and the reason with the person responsible for the books. A write-off does not collect money or automatically establish a tax deduction.

Record the write-off

1. Open Sales & Receivables → Invoices and select the eligible invoice’s Write off balance action.
2. Review Date and Write-off amount against the outstanding balance.
3. Choose the appropriate Expense Account, such as the company’s bad-debt expense account.
4. Enter a Reason that explains the decision and review before saving.
5. Check the resulting write-off status, invoice balance, receivables, and expense for that date.

For a $1,000 invoice with $700 already paid, the remaining $300 is the amount to review for write-off. The original $700 payment stays in the books; the write-off is not another payment.

If it is blocked or was a mistake

Voided, already written-off, and fully settled invoices cannot use the same write-off action. A live credit memo raised against the invoice also blocks write-off; review whether that credit should settle the balance instead. A not-yet-overdue invoice shows an additional warning; that does not make it automatically appropriate to write off.

A written-off invoice has restrictions on edits, voiding, and deletion. Use the available Cancel write-off action and review its result before making a correction. Respect the company’s closed periods rather than moving dates merely to bypass a lock.

Review cash-basis and tax treatment separately with your accountant, particularly when the sale was never included in taxable income.