Manual Write-Off (TI Code 15)

When you apply a receipt to an invoice and a small open amount remains on the invoice, you can make a manual write-off to close the invoice. For example, if you receive a payment from a customer that is less than the invoice amount, instead of creating a chargeback or leaving the invoice pending, you can cancel the invoice to close it.

You must enter a reason for the cancellation, which determines the G/L account that the system debits when you post the receipt. You set up reason codes in UDC 03B/RC. You must also set up AAIs for those reason codes. For example, you might set up these reason codes:

• BD (bad debt)

• MW (minor amount write-off)

• DC (damage credit adjustment)

• TF (disputed tax or freight)

You can set up the maximum amount that is allowed for cancellations and a default reason code in the processing options of the Draft Entry program (P76A8000).