Using Cash Receipts to Write Off Entire or Partial Invoices

Creating a zero-dollar cash receipt in Cash Receipts Entry is the easiest way to write off bad debt, whether it is the entire invoice or just a partial amount of the invoice.

View this Sage 100 step by step software tip in a video format (11:32)

View this Sage 100 step by step software tip with individual screen shots below.

To write off the entire invoice:

  1. On the Accounts Receivable menu, click Cash Receipts Entry.
  2. If Batch Entry is turned on, create a new batch
  3. In the Cash Receipts Deposit Entry window, enter the Bank Code, Deposit Date, and Deposit Number fields.
  4. At the Deposit Amount field, to write off the entire invoice, type 0.00 dollars.
  5. Click ACCEPT. The Cash Receipts Entry window appears.
  6. Enter the Customer No. field.
  7. At the Check No. field, type Bad Debt.
  8. Verify that the Amount Received field reads as 0.00 dollars, and then click the Lines tab.
  9. At the Invoice No. field, enter the invoice to be written off.
  10. At the Amt Posted field, type the amount to be written off. To write off the entire invoice, type the full amount of the invoice.
  11. On the next line, change the LINE TYPE field to G/L Account (This field is in Lower Grid by default).
  12. At the G/L Account field, enter the general ledger account number for bad debt expense; (This field is also in Lower Grid by default).
  13. Amt Posted field, (back to the upper Grid) type the amount to be written off as a negative amount. Click OK.
  14. Check the fields “posting balance” and “Total Posted” are both at zero at this point.
    (*NOTE the screenshot below shows an example of a $43.89 invoice written off to the GL Account “Miscellaneous”.)

Invoice written off to the GL Account “Miscellaneous”

  1. Click Accept, then click the Printer button to print and update the Cash Receipts Journal.

To Write Off a Portion of an Invoice Where the Customer Will Still Owe a Balance

  1. On the Accounts Receivable Main menu, click Cash Receipts Entry.
  2. If Batch Entry is turned on, create a new batch.
  3. In the Cash Receipts Deposit Entry window, enter the Bank Code, Deposit Date, and Deposit Number fields.
  4. At the Deposit Amount field, to write off a portion of the invoice, type the amount received.
  5. Click OK. The Cash Receipts Entry window appears.
  6. Enter the Customer No. field.
  7. At the Check No. field, type Bad Debt.
  8. Verify that the Amount Received field is 0.00, and then click the Lines tab. Verifying that the Amount Received field is 0.00
  9. At the Invoice No. field, enter the invoice of which you will be writing a portion off.
  10. At the Amount Posted field, enter the amount to be written off as a positive number and move to the next line.
  11. On the next line, change the LINE TYPE field to G/L Account.
  12. At the G/L Account field, enter the general ledger account number for bad debt expense, and enter the amount to be written off as a negative amount. Click OK. Enter the general ledger account number for bad debt expense, and enter the amount to be written off as a negative amount
  13. Click Accept and then click the Printer button to print and update the Cash Receipts Journal and the Daily Transaction Register.

Cash Receipts Journal and the Daily Transaction Register

If This is a Partial Write-Off to Record Partial Payment, and the Remainder will be Written Off:

  1. On the Accounts Receivable Main menu, click Cash Receipts Entry.
  2. If Batch Entry is turned on, create a new batch.
  3. In the Cash Receipts Deposit Entry window, enter the Bank Code, Deposit Date, and Deposit Number fields.
  4. At the Deposit Amount field, to write off a portion of the invoice, type the amount received.
  5. Click OK. The Cash Receipts Entry window appears.
  6. Enter the Customer No. field.
  7. At the Check No. field, enter the Check No.
  8. Verify that the Amount Received field is the actual check amount. Verifying that the Amount Received field is the actual check amount
  9. At the Invoice No. field, enter the invoice of which you will be recording a partial payment and also writing a portion off.
  10. At the Amount Posted field, enter the full amount of the invoice’s balance that will be reduced, and tab to the next line.
  11. On the next line, change the LINE TYPE field to G/L Account.
  12. At the G/L Account field, enter the general ledger account number for bad debt expense, and enter the amount to be written off as a negative amount. Click OK. Enter the general ledger account number for bad debt expense, and enter the amount to be written off as a negative amount
  13. Click Accept and then click the Printer button to print and update the Cash Receipts Journal and the Daily Transaction Register.

Update the Cash Receipts Journal and the Daily Transaction Register

General Ledger Posting Result (After Update of the Cash Receipts Journal and Daily Transaction Register):

  • The GL Account entered for the write-off will be debited.
  • Any partial cash received will lead to the Cash account being debited.
  • The Accounts Receivable account will be credited.

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