BC Year-End Close Tips and Tricks: Customer Write-Offs

It is the most wonderful time of the year, to start preparing for year-end cleanup on trial balances. Many customers receive their trial balance and see many small balances from customer short pays or they just need a way to record an invoice or invoices as bad debt.

This blog provides instructions on how to do a customer write-off for posted invoices and to provide instructions on writing off bad debt as well as small balances.

If you are looking for a way to do mass Business Central write-offs for either accounts receivable or accounts payable, check out this write-off app on AppSource: https://appsource.microsoft.com/en-us/product/dynamics-365-business-central/pubid.bcappmaker%7Caid.mass_apply_documents%7Cpappid.dadae406-40af-4d38-b2c4-54c0cb8fc35a

1. Navigate to sales journals 

   
   

   

   
   

2. Enter the posting date. This is the date you wish to write off the balance 

3. Add a Document Type of payment 

4. Add Reason code to the page using personalize. I added a reason code called WRITEOFF to my reason code list and then assigned it to the line.  

   
   

   

   
   

5. Add a document number. I called mine Writeoff- you can make this whatever you want.  

   
   

   

   
   

6. Add a description of the write-off 

7. Add the dollar amount of the write-off 

8. Add the balancing G/L account. I used the bad debt expense in my chart of accounts but use whatever account you want the transaction to post to.  

9. Apply the document to the original invoice(s) using apply entries.  

10. Post the write-off document.  

  For help with BC year-end close, support issues or to learn more about us, contact smullins@abccgroup.com or visit our site at www.abccgroup.com.