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Write off invoices

Access full CDR help from the QuickBooks Accountant Edition.

Specify the write off terms

  • Select the Write Off Account from the list. A write off account is required.
  • Change the write off date, if necessary. A write-off date is required.
  • Enter a write off class. A write-off class is optional and can help track types of write offs.

Preview and Write-Off

  • Click Preview and Write-Off. A confirmation of the write off appears that shows all the invoices to write off, the write-off account, and the total amount to write off. Click Write Off to complete the write off, or click Cancel to return to the main window.

    Note: If you cancel the write off, the invoices are still selected. Click Deselect All to clear the selection, or continue working with the selected list. Keeping the selection is useful when you want to change the write-off account, or when you want to remove an invoice from the list.

Cash Basis Considerations

If you write off an invoice for a cash-basis company, the income goes up as of the write-off date and is offset by the post to the write-off account. You may prefer to use a contra-income account instead of an expense account for the write-off account to avoid overstating cash basis income.

Sales Tax Considerations

CDR creates a discount transaction, not a credit memo, to write off invoices. If sales tax is paid on an accrual basis, writing off invoices to either an expense or contra-income account does not reduce accrual basis taxable sales. To avoid an overstatement of sales tax payable, you can use a sales tax adjustment or a journal entry.

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