Occasionally, you might want to write off unpaid invoices or partially paid invoices when you are sure that the invoice balance is uncollectible. For example, your end customers who receive an invoice might fail to pay the invoice timely. After attempting to collect payment to settle this invoice for a certain period (for example, 90 days past due), you might want to declare the invoice as bad debt. At this point, you might want to write off the unpaid invoice to reduce the account receivable balance. To learn about the common use cases of invoice reversal, see Invoice write-off use cases.

Overview

By writing off an invoice, a credit memo is created and applied to the invoice. The generated credit memo items and credit memo taxation items are applied to the corresponding invoice items and invoice taxation items respectively. If an invoice is written off, the balance of each invoice item and invoice taxation item must be zero after the write-off. You can write off invoices in any of the following situations:

• An invoice is never settled by any transactions such as payments or credit memos.
• An invoice is partially settled by some transactions. For example, any payments or credit memos are applied to an invoice. In this case, only the unsettled part of the invoice can be written off.

There are various ways to write off an invoice:

• Write Off Invoice via BillHive UI
• Write Off Invoice API
• Cancel Subscription via BillHive UI
• Cancel Subscription API