Writing Off an Invoice

Record uncollected payments and keep your financial records accurate with Officaid.

Record bad debt the right way

Sometimes clients don't pay. A write off lets you close an unpaid invoice and record it as a loss, keeping your books accurate without chasing payments you'll never receive.

When to Use a Write Off

Write offs are typically used when:

A client refuses to pay or has stopped responding
The client's business has closed or gone bankrupt
The cost of collecting the payment exceeds the invoice amount
You've decided to forgive the debt for goodwill reasons

In simple terms, a write off tells your accounting system "we're not going to collect this money" and records it as a business expense (often called bad debt expense).

Need to reduce an invoice amount instead of removing it entirely? → Adding a Credit Note

Adding a write off affects your financial reports as it is recorded as an expense to your business. If you're unsure, consult your accountant or reach out to Officaid support.

Before You Begin

Make sure you have an approved invoice with an outstanding balance.

Steps

1 Open the invoice you want to write off.
2 Click the Add Write Off button.
3 Review and fill in the required fields.
4 Click Add Write Off to save.

Understanding the Fields

When you click Add Write Off, the form opens with some fields pre-filled:

Write Off Date is set to today
Amount is pre-filled with the remaining balance (adjust for partial write offs)
Remarks is required to explain why the write off was issued

Be specific in your remarks (e.g., "Customer did not pay" or "Client business closed"). This helps with record keeping and audits.

After Adding a Write Off

Once added:

The invoice balance updates to reflect the write off
If the write off covers the full amount, the invoice status changes to Paid
The write off appears in the Invoice Activity section
The invoice document shows a Write Off line with the amount deducted

Just like a regular invoice, you can email the updated invoice to your client with the write off details included. → Sending an Invoice

Viewing or Removing a Write Off

You can manage your write off from the Invoice Activity section:

Click View to see the write off details
Click Remove to delete the write off if it was added by mistake

Frequently Asked Questions

Can I add a partial write off?

Yes. Adjust the Amount field to write off only part of the invoice. The remaining balance will still be due.

Can I add multiple write offs to one invoice?

Yes. Each write off is logged separately in the Invoice Activity.

What's the difference between a write off and a credit note?

A write off records an unpaid amount as a loss (bad debt expense) when you don't expect to collect payment. A credit note reduces the amount owed and is usually shared with the client for discounts or adjustments.

How does a write off affect my financial reports?

Write offs are recorded as bad debt expense in your Profit & Loss report. This reflects the cost of uncollected payments to your business.

What's Next?

Adding a Credit Note to adjust invoices for refunds or discounts
Recording a Payment to mark invoices as paid
Understanding Invoice Statuses to track your invoices

invoicing write off payments