📝 Overview

Customer AR write-offs allow you to clear a customer's outstanding balance from their account when the amount will not be collected. This is done by creating a negative credit product, applying it to the customer's account, and processing a $0 checkout. Once complete, the balance will no longer appear on the customer's profile.

⚠️ Important Note: If a non-booking invoice has no payment allocations (meaning it is completely unpaid), the preferred approach is to void the invoice directly. Voiding is the cleanest way to remove a non-booking invoice from the system because it fully backs out the invoice line item(s) without creating additional accounting adjustments.

The write-off process should only be used in situations where an invoice cannot be voided or remaining balance will not be collected. In those cases, a write-off is used to clear the remaining balance while preserving the historical record of payments, allocations, and adjustments.

For step-by-step instructions on how to void an invoice, please refer to the related article on invoice voiding.

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🛠️ Setup

Before you can write off a customer's AR, you will need to create a negative credit product. This only needs to be done once and can be reused for future write-offs.

Click the arrow to learn more about setting up a Customer AR write-off product

Navigate to the Products page using either of the following options:
- Type "Products" in the global search bar, or
- Click the Cash Register dropdown menu and select Products.
Select the "+" button to create a New Product and name it something recognizable, such as Customer AR Write Off or Customer Account Credit.
Set the base price to $-0.01 so the quantity can be adjusted to match any write-off amount.
Decide how you want to restrict access to this product. Two common options:
- Add it to the cash register for limited staff access only.
- Assign a UPC code (such as ARwriteoff or credit) that only select staff know, so it does not appear for general use at the front desk.

✍️ Note: Limiting access to this product helps prevent accidental use by front desk staff.

💳 Write-Off Process

Once the credit product has been created, follow these steps to apply the write-off to a customer's account.

🛒 Applying the Credit to a Customer's Account

Click the arrow to view the process of applying the credit in the shopping cart

Navigate to the customer's profile and open a new shopping cart transaction.
Add the Customer Account Credit (or your write-off product) to the cart.
In the quantity field, enter the customer's balance multiplied by 100. For example, if the customer owes $307.00, enter 30700 as the quantity. This will make the line item total -$307.00.
Make sure the customer is invoiced to the cart before proceeding.
To apply the credit to the customer's account, choose either of the following options:
- Select Invoice to quickly invoice the negative credit to the customer's account, or
- Select Checkout, set the Cash tab, enter 0 in the Cash Received field, add a note in the Add Note field explaining the reason for the write-off, uncheck the Send receipt checkbox, and select Process Checkout.

🔔 Process Complete: The write-off has been applied. The customer's profile will no longer reflect the written-off balance.

💡 Pro Tips

🔒 Restrict the product - Assign a non-obvious UPC code to your write-off product so it can only be used by staff who know the code, reducing the risk of accidental credits.
📋 Always add a note - Use the Add Note field at checkout to document the reason for the write-off; this creates an audit trail for reporting and internal review.
✅ Check before you write off - If the invoice has no payments applied, voiding the invoice is faster and cleaner than the write-off process.

❓ Frequently Asked Questions (FAQs)

Find answers to common questions or additional details that may not be covered in the main instructions.

Click the arrow to view frequently asked questions

Can I use this process for any outstanding balance?

Click the arrow to see the answer

This process works for any partially paid invoice or balance that cannot be voided. For invoices with no payments applied, voiding the invoice directly is the preferred method. See the Voiding Invoices article for details.

What if my write-off product doesn't exist yet?

Click the arrow to see the answer

You will need to create it first. Follow the steps in the Setup section above to create a negative credit product before beginning the write-off process. Once created, the product can be reused for all future write-offs.

Why do I enter 0 in the Cash Received field?

Click the arrow to see the answer

No actual money is being exchanged during a write-off. Setting Cash Received to 0 ensures the transaction processes without recording a payment, while still creating the negative credit invoice on the customer's account.