Problem: How to write off Accounts Payable balance ?
Solution: Accounts Payable balance can be written off by Mutual Settlement document.
1) Go to Accounting>Service Tools>Mutual Settlements:
2) Create a new document. Select Transaction Type - Supplier Debt Adjustment. Specify Supplier name.
In Account field:
- Put PL Income account if you want to write off Payable Balance (unpaid Invoice Received), and
- Put PL Expense account if you want to write off Advances Paid (non-allocated prepayment):
3) In Accounts Payable tab use Pick option to select the Invoices (or Prepayments) that you want to write off:
4) In GL Account column GL account from invoice will be selected , in Amounts column there should be the amount that you want to write off:
5) Once you post the document, the following transactions will be created:
6) In Company Statement, the written off balance will be marked as paid:
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