How to Write off some Sales Invoices?

There are some invoices for which no payment has been received. Please note, there is no partial payment also.

The invoices have been raised, but can’t be cancelled for the records.

What is the procedure in steps for writing off these invoices?

Hi @Neoito,
-You can pass ‘Journal Entry’ to write off sales invoice.

  • At the time of creating ‘Journal Entry’ keep “Entry Type” as “Write Off Entry”
  • ‘Write off’ section->
    1.Write Off Based On - Accounts Receivable
  • ‘Get Outstanding Invoice’ and Enter Write Off amount
  • first entry of Debtor (customer) account against Credit ----- select reference type and name
    your second entry will be “write off” account against Debit
  • save and submit
  • Sales Invoice status will become “Paid”.

Hi @shraddha,

I did exactly as you said, but this amount is both coming as Income and Expense(Write Off - I have named the account as Bad Debts).

But as I have not realized the amount, logically it must not come in Sales head(Income) right?

Finally if I want to know the income for the financial year, this amount in the Income, finally returns a wrong figure.

Thanks in advance for your reply.


Hi @shraddha,

Can you please help with my above query?


@admins team, Can you please be of help to my above query?


@admins team, Requesting again.

Having same questions, the write off amount in sales invoice didn’t seem to reflects on write off entry?
Anyone can help?


Check in Settings Company if you have defined Write Off account. Define it and then pass write off entry.

Hi Muzzy,

Thanks for replying. But I did set write-off account in company setting.

My procedure and observation is:

  1. One overdue sales invoice I need to write off.
  2. Create a journal entry, enter Entry Type as ‘write-off entry’.
  3. In accouting entries, set customer credit against company Debtors account and reference type as sales invocie and the reference name as sales invoice name, set the same amount debit to write off account.
  4. On write off section: set ‘Write off Based on’ Accounts Receivable, and write off amount as well.

Save, submitted the journal entry.

But when I checked the overdue sales invoice, the status change to paid, but the write off amount is still 0.

Any suggestions?
Thank you

You can do try using payment entry.

On payment entry we have depend upon condition on REFERENCE section which is pointing to Paid Amount field so either you remove the condition using customize form or Add add some value on paid amount field such as 0.01 and add Write Off account under the DEDUCTIONS OR LOSS section.

Please check below example:

Sales Invoice Get Updated as Paid

Hi Aadhil,

Thanks for your reply.

I tried with what you suggested.
Below is the payment entry,

And the sales invoice status is changed to ‘Paid’ as you mentioned, however the write-off amount is still shows as 0.

I am not sure if this is not the intention to show the write-off account, but the follow up question would be which report should I look at if I need to have a basic idea about write-off account?

Thank you in advance,