How to write off a time billing invoice

This article will help walk you through writing off time billing invoices that are not collectable to clear them from Accounts Receivable.

To write off a time billing invoice you will do one of the following: 

If no sales tax is involved, you may post a Cash Receipt.
  • Use payment method Receive & Apply to Items
  • Change the Cash Account to Write Off.
  • This Account does not exist in Studio Designer by default. To create it go to Settings > Chart of Accounts.

If sales tax is involved you will follow the steps below.
  1. Go to Time Billing > +Track Time.
  2. Fill in all the information for the time billing entry.
    1. Quantity = 1
    2. Client Rate you will enter a negative (-) amount for the total you are writing off not including sales tax. In the illustration below $250.00 plus sales tax is being written off for a total write off of $262.50. Note that the Taxable field is check marked so that when the Invoice is generated it will calculate and include sales tax amount.
    3. Invoice this negative entry separately within Time Billing > Create Invoice.
  3. Follow step 2 (Reapply Credit to Balance Item to Clear from Accounts Receivable) of the article titled How Do I Clear Old Invoices that We Want to Write off. This will clear the Accounts Receivable.