How to Write Off an Invoice in Sage 100 Cash Receipts Entry

Writing off an invoice in Sage 100 using the Cash Receipts Entry process is a straightforward task. Whether it's due to a payment error or an uncollectible amount, you can adjust your accounts without compromising the integrity of your data.

This step-by-step guide walks you through creating a zero dollar cash receipt and making necessary adjustments to the original transaction. By following these instructions, you’ll ensure that your financials remain balanced while effectively handling the write-off process in Sage 100.

Here's how to get started.

  • Create a zero cash receipt using the same dates and check number as the original cash receipt.

    • Open Accounts Receivable, Main, Cash Receipts Entry.

    • If the A/R Cash Receipts Entry Batch window displays, click the Next Batch button.

  • In the Cash Receipt Deposit window, create a deposit.

    • Click the Next Deposit Number button.

    • Enter a description.

    • Select a bank code.

    • Enter the deposit date (this date should be the same date as the ORIGINAL Cash Receipt that you are adjusting.).

    • Enter the cash deposit amount as ZERO.

    • Click Accept

  • On the Header tab,

    • Select the customer number.

    • Select deposit type, CASH.

    • Enter the check number in the Check Number field.

    • Enter the amount as ZERO.

  • Click the Lines tab.

    • Enter the incorrect invoice number related to the payment being adjusted.

    • In the Amount Posted field, enter the amount as a negative.

  • Create a new line for Line Type GL Account

    • Enter the GL Account to adjust the Accounts Receivable against (in the example below 2104-00-00)

    • In the Amount Posted field, enter the amount as a negative.

  • Create a new line for Line Type GL Account

    • Enter the GL Account to adjust the Accounts Receivable against (in the example below 5002-00-13)

    • In the Amount Posted field, enter the amount as a positive

  • Click Accept to save the entry.

  • Print and update the Cash Receipts Journal.

If you have other questions about Sage 100 Cash Receipts, Ardent Consulting is at your service. Our team of experts is ready and eager to help you navigate your system challenges and optimize your business's potential. We prioritize your business’s health and are committed to supporting your journey every step of the way.

Doug Clark