How to write-off in OpenERP/Odoo Accounting


 

For example, you made a sale on credit to a customer, but one week later the client’s business declared bankruptcy and became completely unable to pay off the credit account with you. This uncollectible debt would then be written-off by your company and recorded as an expense by accountants.

Here we are going to take an example of “write off” for sale in OpenERP. Create customer invoice and validate it.

Validate Customer Invoice
Validate Customer Invoice

It will create sales accounting entries like below.

OpenERP Journal Entries
OpenERP Journal Entries

Now we are getting some amount from customer as a part of his invoice.

Invoice Payment
Invoice Payment

Still there are some balance customer has to pay.

Invoice After Payment
Invoice After Payment

This is customer’s partial payment entry.

Payment Entry
Payment Entry

Now, customer is telling that he will not pay remaining amount for any reason. So it require to make settlement for our accounting means make write-off on customer invoice.

From journal item, we are selecting original sales and payment entries and using “Reconcile Entries” option.

Reconcile Option
Reconcile Option

Here we can check remaining balance that we are going to write-off.

Reconcile Window
Reconcile Window

Here we have very important option available. We have to select proper journal and account where entries will occur.

Reconcile Option
Reconcile Option

After reconcilation, there is no due amount to take from customer and invoice become PAID.

OpenERP Paid Invoice
OpenERP Paid Invoice