This article explains how to write off an un-collectable invoice balance by using a specific payment method. This process allows you to track written-off debts for accounting purposes.
Before you begin to write off an invoice balance, it is recommended that your clinic has a specific payment method for this purpose, such as 'Bad debt' or 'Write-off'. If you do not have a suitable payment method, please discuss creating one with your administrative or accounting staff. You can then use the Payments report and filter for this specific payment method to get a total sum of your written-off invoices.
Provet is not an accounting system, and this method is a recommended workflow for tracking purposes within software. Please consult with your accountant to determine the best workflow for your clinic before making any changes. Adding payment methods and running reports requires administrative permissions.
To write off an invoice balance or to clear an un-collectable balance, follow these steps:
Go to the specific finalised invoice you want to write off.
In the Payments section, select + Payment.
From the Payment method drop-down list, select the 'Write-off' payment method (the payment method your clinic set up for this purpose).
Use this payment method to pay the due amount, bringing the balance down to 0.00.