Writing off an invoice
What is an invoice write off?
An invoice write off is a way to deal with bad debts and invoices that become uncollectible. When you write off an invoice, a credit note will be applied to reverse the invoice and the VAT.
How do I write off an invoice in Wafeq?
To write off an invoice, go to invoices in the left side menu, then from your invoice’s list view, click on Void. Once you confirm your request, the invoice’s status will change to VOIDED.
How do I choose the account of my invoice write off?
To have more control over where the write off will be recorded, you can create a credit note specifying the account of the write off.
For example, if you want to record a bad debt, go to Credit notes in the left side menu, and click on add credit note. From the Account column, choose the Bad Debt account, and indicate the same Sales tax rate added in the original invoice. This will reduce the VAT due at the next VAT return by the VAT amount you already paid in the previous return period.
Finally apply the credit note to the invoice, so the invoice is marked as PAID.
- Creating and sending an invoice
- Creating a recurring or scheduled invoice
- Recording sales from a Point of Sale with Simplified Invoices
- Recording a customer invoice payment
- Recording bank fees and invoice payments
- Recording a customer advance or downpayment
- Sending a payment receipt to your customer
- Choosing an account for an invoice or bill line item
- Offering discounts in fixed amounts