Writing off Pledge or Grant Receivables

If a donor did not pay as promised, you can write off the pledge or grant.

Use the Receivable Write-off custom transaction to remove overdue pledges or grant receivables and adhere to accounting rules.

Note:

To use Receivable Write-Off transaction, you must set the accounting preference. Go to Setup > Accounting > Accounting Preferences, and then click Items/Transactions. Under the Accounts section, select an account from the Receivable Write-Off list. This account should be a bad debt expense account.

To write off receivables:

1. Go to NFP Financial Center > Financial > Receivable Write-Off > New.

   NetSuite displays the Receivable Write-off page. The Custom Form for NFP is selected by default.

2. In the Primary Information section:

   1. The Currency field displays the base currency of the subsidiary selected in the Subsidiary field.

      You can select any other currency available in your account.

   2. The Exchange Rate field displays the default exchange rate of the selected subsidiary.

      You can edit the exchange rate for this transaction only, or you can update the currency exchange rates list.

   3. In the Date field, accept today's date or enter a new date for the journal entry.

   4. If you use fiscal periods, select the Posting Period in which to post this write-off transaction.

   5. In the Memo field, enter a memo to help you recognize this write-off transaction.

3. In the Classification section:

   1. If you use Departments, select the appropriate classification to associate with this write-off transaction.

      For information about Departments, see Departments and Classes Overview.

   2. From the Program list, select the program that identified the purpose of the overdue pledge or grant receivable.

   3. From the Restriction list, select Without Donor Restriction. This field is required.

   4. From the Functional Expense list, select the expense category.

   5. From the Grant list, select the associated grant.

   6. From the Region list, select the associated region.

4. On the Lines subtab, enter the items to write off.

   1. In the Constituent field, select the donor for the overdue pledge or grant receivable.

   2. In the Account field, select the receivable account from the invoice of the overdue pledge or grant receivable.

   3. In the Amount field, enter the amount of the overdue pledge or grant receivable.

   4. In the Memo field, enter a memo to help you recognize this item.

   5. Click Add.

   6. Repeat these steps for each line item.

5. Click Save.

6. To close the invoice for the overdue pledge or grant receivable, apply the credit from this transaction to the invoice:

   1. Go to Transactions > Sales > Create Invoices > List, and then click View next to the invoice for the Receivable Write-Off.

   2. Click Accept Payment.

   3. In the Payment Amount field, enter 0.

   4. Click Credits, and then select the Receivable Write-Off transaction line.

   5. Click Save.

Related Topics

Pledge and Donation Management

Creating Pledges

Invoicing Pledges

Creating Cash Donations

General Notices