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. At Accounts Payable tab, use Pick option to select the Invoices (or Prepayments) to write off:

4. In GL Account column GL account from invoice should be selected, in Amounts column there should be the amount to write off:

5. Once the document is posted, the following transactions is created:

6. In Company Statement, the written off balance is marked as paid:

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