Writing off Taxes on a short paid Invoice
Instead of creating a debit memo, you can mark the debt as paid in full and write off the remaining amount.
If it is the ‘balance of an invoice’ and not the full invoice, the amount of tax will need to be manually entered.
The tax write-off mechanism writes off the full amount of taxes. Example if it were an $1000 invoice, and the customer paid $600 and we’re writing off the balance of $400. The taxes for the full $1000 will appear, but we’re only writing off the amount of the taxes for the $400 portion, so you need to figure that out manually ahead of time.
Address: ARECE
Menu: Customer > Entry > Cash Receipt
Click OK to open a journal.
Type: Payment
Check #: The check number
Amount: Amount of the payment
Click: <NEXT>
Enter or lookup the Customer’s account associated with the Invoice to apply the payment.
Click <Next>
**The magnify glass can be used to search the list, otherwise, scroll through the list.
Check the box of the Invoice to write off
Check the <Paid In Full Box>
Apply Amount: Enter the amount to apply to the invoice.
Note the Proof amount is negative. This amount represents the tax value of the short payment.
Press <TAB>
The Write Off Distribution Window will appear.
Check the Box of the Write-Offs listing
Click <WRITEOFF TAX>
Note, the proof is Zero
Click <OK>
Click <FINISH>
Confirmation:
Ready to Update?
Click <YES>
