Writing off receivables (registering loss) in accounting refers to the process of recording an expected or realized financial loss in a company's accounts.
Writing off in Checkin
If a customer does not pay their invoice and there is little or no chance of recovering the money, the company can write off the receivable. This means the receivable is removed as an asset and recorded as an expense in the income statement. You can handle this easily in Checkin.
In the "Open Items" section, you can easily get an overview of unpaid receivables. Here, you can monitor their statuses, including due dates and the number of payment reminders sent.
To write off an item, click on the order number to open the order. In the order details, you will find a button labeled "Write Off."
How It Is Recorded
Income Statement: The loss will be recorded as an expense, reducing the company's profit. This will be documented in the voucher for the month in which the loss is registered, as well as in the settlement voucher issued after the write-off is completed.
Balance Sheet: The receivable related to the loss is reduced or removed from the balance sheet.