Write off a customer invoice or bad debt in Accounts Receivable

You can write off bad debt in AR (A/R) using a partial or full write-off in Sage 100.

Write Off an Entire Invoice or Multiple Invoices

1. Open Accounts Receivable, Main menu, Cash Receipts Entry.
2. If you have batch processing enabled, the Cash Receipts Entry Batch window appears:
   • Click Accept.
   • Select Private Batch if needed.
   • Enter a Comment (optional).
   • Enter the Batch Number or click Next Batch.
3. In the Cash Receipts Deposit window:
   • Enter the Deposit Number or click Next Deposit Number.
   • Fill in Description, Bank Code, and Deposit Date.
   • For Cash Deposit Amount, enter 00 and click Accept.
4. In Cash Receipts Entry:
   • Enter the Customer Number or use Lookup.
   • For Deposit Type, select Cash.
   • For Check No., enter BAD DEBT or WRITE-OFF.
5. On the Header tab:
   • Verify Amount Received is 00.
6. On the Lines tab:
   • For each invoice:
     • Create an Invoice line.
     • Enter the Invoice No. or use Lookup.
     • For Amt Posted, enter the full invoice amount.
   • For the GL account:
     • Create a GL Account line.
     • Enter the GL Account number for bad debt/write-off.
     • For Amt Posted, enter the full amount as a negative value (for example, -50.00).
   • Click Accept.
   • Click the Print button to print and update the Cash Receipts Journal.

For Partial Write-Offs

• If the customer still owes a balance:
  • Follow the steps above, but enter only the amount you’re writing off for each invoice.
  • The negative Amt Posted for the GL Account must equal the total partial write-off amount.
• If recording partial payment and writing off the remainder:
  • Enter the received amount in Cash Deposit Amount and Amount Received.
  • For Amt Posted on invoices, enter the reduction from both cash received and write off.
  • The negative Amt Posted for the GL Account will equal only the write-off amount.

General Ledger Posting Result

• The system debits the GL Account for the write-off.
• The system debits the cash account for any partial payment.
• The system credits the Accounts Receivable account.

 NOTE: Always confirm the correct GL account with your accountant.