Invoice Write-Offs (EMS)

iMIS Documentation Here

Background

The process of writing off Invoice balances involves removing the open Accounts Receivable (AR) along with a corresponding debit or credit to the Write-off/Offset account under AR/Cash Default Accounts (please make sure you have this entered for each entity).

Typically, customers will write off “Debit” Balances (aka Bad Debit)- where the customer/member/donor owes the organization money. However, you can also write off “Credit” Balances where the Organization owes the member money.

Pro Tip: Many organizations have many outstanding “older” invoices and you should discuss with your Finance team when the best time to perform this write-off is. A decision to do so near the end of the Fiscal year can be a good idea, however, management should be aware of this because you will be incurring a Bad Debt Expense in return for removing outstanding Accounts Receivable.

Steps

1. Create a new batch for the write-offs. The write-offs will occur on the date of the batch.

2. Finance → Closing procedures → Invoice write-offs

3. Select the oldest date, the maximum amount you want to write off, and Debit (for outstanding balances owed by members/donors) or Credit (for outstanding balances your organization owes a member/donor)

4. Optionally enter the iMIS ID if only doing for one person.

5. Click Find

6. Mark the invoices you wish to write off

7. Click Record Write-Offs

8. Confirm write-offs. Remember, these can not be un-done