How to Write Off a Note Receivable

1. Fetch the Notes Receivable list using the Transactions Through date you would like to use as your write off date.
2. Create a new Loan Fee document for a negative amount equal to the Total Currently Due for that loan. See Loan Fee Doc next screen shot.

You may need to create a new charge for Loan Write Off if you do not already have one in your list. The general ledger account used can be adjusted later using a Journal Entry if this is not the final account. For instance, in the case of a returned piece of equipment, you would want to move those dollars out of the write-off account into the cost of the equipment in used inventory.

Create a new Note Receipt dated the same date you used when generating your list in the first screenshot. In the Amount Applied column:

1 - Key in the total outstanding principal for the loan as seen on the list in the first screenshot,

2 – Key in the total amount of interest due,

3 – Key in the amount of the loan fee you just created.

When entered correctly, the total for the Amount Applied column will be zero.

After saving the Note Receipt document, your list should now reflect that no amounts are due for this loan.