To identify write-offs, the Financials module allows you to assign codes to write-off reasons. These codes are identified when bills are written-off. The codes must be previously registered though.

The table of write-off reasons features some default reasons, and you can customize them as you see fit.

There are five default reasons for bill write-off:

• Regular (NOR) - for regular payment bills. For write-offs payable, it automatically updates bank transaction if a check has been generated for the bill. For write-offs receivable, it automatically updates bank transaction.
• Return (DEV) - for receipts referring to returns. It does not update bank transaction for both write-offs payable and receivable.
• Refund (DAC) - for when something is given as payment. It does not update bank transaction, for both write-offs payable and receivable.
• Vendor (VEN) - for payment of bills via bank loan. The bank becomes the beneficiary. However, the company must have a bank contract registered to enable this loan. It automatically updates the bank transaction for write-off payable only.
• Current Account Debit - it registers the debit automatically, and you do not have to generate a check on the bill. Used for write-offs payable.

Procedures

To register the table of write-off reason:

1. In Table of Write-off Reasons, a window displays write-off codes registered.

2. Click Add.

3. Fill out data according to field help instructions.

4. Check out the following fields:

• Acronym - identifies the write-off reason in internal system routines.

Example: NOR = Regular

• Description - describes the write-off reason.
• Portfolio - identifies the portfolio to use the write-off reason. It can be:

R = portfolio of bills receivable;

P = portfolio of bills payable;

A = both portfolios.

• Bank Transaction - identifies whether the chosen write-off reason will update bank balance.
• Commission - in the portfolio receivable, identifies whether the chosen write-off reason will generate commissions for sales representatives on the amount written-off.
• Check - in the portfolio payable, identifies whether the chosen write-off reason will generate bank transaction with or without check. This parameter works parallelly with the parameter Bank Transaction.

5. Check data and confirm.

6. If you want to edit a registered write-off reason, click Edit.

The system displays the write-off reason for edition.

7. Make any necessary changes and confirm.