You can write off retainage billed invoices through Enter Cash Receipts or in Adjust Receivables.

Write offs don't reduce the work billed totals on the contract or job. Void the retainage invoice and adjust the retainage held with a billed credit to adjust the work billed. You may need to adjust retainage held on multiple invoices to reach the total adjustment amount.

Use Adjust Receivables if:

• You need to adjust the retainage held
• You need to override which debit account the adjustment uses
• You need to write off an invoice with retainage overbilled
• You need to adjust a particular line item or distribution on the invoice

 

Write off in Adjust Receivables

1. From Tasks, select Adjust Receivables.
2. In the Adjust Receivables window, enter the customer ID and accounting date.
3. Select the retainage billed invoice and click Adjust.
4. In the Adjustment type list, select Write-off.
5. Enter the applicable Adjustment date.
   Note: The Adjustment date is used for aging purposes when your aging basis is Invoice date.
6. The Retainage Billed Adjustment field prefills with the outstanding retainage billed balance. Change the prefilled amount to write off just part of the amount.
7. Click Distributions.
8. Select which items you want to adjust, or leave it as the prefilled items.
   Note: You can change the debit account now. The debit account will prefill from the Write off Account in AR Settings.
9. Click Finish twice.
10. Click Yes to post the entries.

 

Write off in Enter Cash Receipts

1. From Tasks, select Enter Cash Receipts, and select entry view to use.
2. In the Deposit Information window, enter the deposit information and click OK.
   Note: Enter the amount of the actual deposit you’re making. You don’t need to adjust the deposit amount for the write-off amount.
3. In the Deposit Items window:
   1. Select the deposit item type.
   2. Enter the Customer, Amount, and other deposit item information.
   3. Press ENTER at the end of the line to open the Cash Receipts Selection window.
4. In the Cash Receipts Selection window:
   1. Locate the invoice that you want to adjust.
   2. Click until Write off becomes available.
5. Click Write Off to open the Write-off Amount window.
6. Enter the amount to write off in the Invoice Amount Write-off box.
7. Click OK. When the message box appears, click Yes to create the adjustment.
8. Click OK in the Cash Receipt Selection window.
9. Click Finish to finish your cash receipt entries.
10. Click Yes to post the entries.