Write-off Batches in Sage 300 ERP

We come across situations where Customer receipts have amounts shorter as compared to invoice amounts but the difference is too small to keep the invoice open.

The reasons to short close these invoices can be purely Customer Management related, now the question is how to configure these in systems?

Further to this, if there are more than 1 such documents and multiple number of such customers, then Knocking-off document-by- document will be very tedious and time consuming task

Therefore, Sage 300 has a feature where we can write-off a document in the terms of amount and percentage as per our requirement.

Let’s see this with help of example:

Suppose we have received the payment of INR 10000 from a customer against the invoice of INR 10002. And our management says for the sake of customer relation, we waive off this INR 2.

As we can see payment amount and invoice amount does not tally therefore,

We need to setup system for such kind of behavior otherwise; our book balances will not tally with the system balances.

This inconsistency can be overcome by using write-off batches functionality
We can write-off the documents depending on various types as mentioned below.

1. Outstanding Transaction.

2. Overdue Transaction

3. Overdue Balances

4. Outstanding Balances

There are several filtering criteria’s provided by the system such as you can execute the write off batch on a particular date, if you want you can use specific type of transactions to write-off, further to this you can select the documents based on the customer and customer groups. You can refer the below write off screen which is present in Accounts receivable->AR Periodic Processing->Create write off batches.
Once the batch is executed, system will create an un-posted entry in AR invoice batch list where it will Credit the customer on one side and will Debit the write off account defined in AR account set on other side.