Writing Off Invoice Lines (Bad Debt)

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Writing off an invoice line in Halaxy allows you to mark a particular fee as bad debt that will not be recovered. Writing off an invoice line means that the invoice will be considered settled so that it no longer appears on the unpaid invoices report and no longer affects the patient or organisation's fee balance, but the written-off amount will not appear as income.

Fees that are written off will not be shown on the invoice, but a record is retained so the fee can be restored to the invoice if needed. You can also run an invoice report to track written-off invoice lines to assist in tracking bad debt.

You can write off individual invoice lines as well as entire invoices. Written-off invoices have their status set to Write-off instead of Active or Issued.

Invoices with any written-off lines are shown with a red dot over the invoice summary (cogwheel) icon:

Invoice_RedDot.png

Image: Invoices with written-off lines have a red dot over the invoice summary icon

Writing off an invoice line

Writing off an invoice line in Halaxy

Image: Writing off an invoice line and then restoring it (expand image)

To write off an invoice line:

  1. Navigate to the invoice.

  2. Click the Delete (trash) icon for the invoice line you wish to write off.

  3. Select "Write off invoice line as a bad debt".

  4. Click Submit.

RESULT: The invoice line is removed from the invoice, but a record is retained and will appear on invoice reports that you filter to show written-off invoice lines. The invoice line can be restored from the invoice summary, accessible by clicking the cogwheel icon in the top-right.

Writing off an invoice line with partial payment

If partial payment has been made for a particular line, you can write off the remainder by duplicating the fee so that one fee represents the amount paid and the other fee represents the amount unpaid. You can then adjust the amounts and write off the fee equal to the amount unpaid.

To do this:

  1. Navigate to the invoice.

  2. If you have not already processed the partial payment or marked the invoice as partially paid, click Process Now or Mark as Paid to mark the invoice as partially paid.

  3. Click the Edit (pencil) icon for the fee representing the amount paid and adjust the Amount field to reflect the amount paid.

  4. Click Add Another Fee and choose the same fee. Make sure to adjust the Amount field to reflect the amount unpaid.

  5. Click the Delete (trash) icon for the invoice line you wish to write off (the fee representing the amount unpaid).

  6. Select "Write off invoice line as a bad debt".

  7. Click Submit.

RESULT: The invoice now shows only the fee with the amount paid, and the fee with the amount unpaid is removed from the invoice. A record is retained of the unpaid amount and will appear on invoice reports that you filter to show written-off invoice lines. The invoice line can be restored from the invoice summary, accessible by clicking the cogwheel icon in the top-right.

Writing off an entire invoice

Writing off an entire invoice writes off all invoice lines. The invoice will still appear in your invoices list, but the amount owing will be set to zero.

Writing off an entire invoice in Halaxy

Image: Writing off an entire invoice (expand image)

To write off an entire invoice:

  1. From the invoice, click the cogwheel in the top-right of the invoice.

  2. In the Status drop-down menu, select Write-off.

  3. Click Save.

RESULT: All invoice lines are removed from the invoice, but records are retained and will appear on invoice reports that you filter to show written-off invoice lines. The invoice lines can be restored from the invoice summary, accessible by clicking the cogwheel icon in the top-right.

Restoring a written-off invoice line

Any written-off invoice line can be restored by accessing the invoice summary (the cogwheel icon at the top-right of the invoice).

Invoice_WriteOffRestore.png

To restore a written-off invoice line:

  1. From the invoice, click the cogwheel in the top-right of the invoice.

  2. In the Voided/Write-off Fees & Charges section, click the Restore icon for the invoice line you wish to restore.

  3. In the Status drop-down menu, change the status to Active or Issued.

  4. Click Save.

RESULT: The invoice line is restored to the invoice. Make sure to also change the status of the invoice.

Invoice reports to track bad debt

Voided and written-off invoice lines can be tracked via the invoice report. To run an invoice report to track bad debt:

  1. Click Reports > Finance.

  2. Click New Report at the top-right of the page.

  3. In the Report Type field, select Invoice.

  4. In the Lines field, select "Show write-off / voided lines only".

    InvoiceReport_WriteOff.png
  5. In the Line Status field, select whether you want to include write-offs, voided fees, or both. By default both statuses are selected; click the red X to remove a status.

  6. Set other parameters as desired, then click Run.

RESULT: A report will be displayed showing written-off and/or voided invoice lines, with links to the relevant invoices.

Write-offs and syncing with Xero, Reckon and QuickBooks

Invoices and invoice lines that are voided or written off will not be automatically synced to Xero, Reckon or QuickBooks. If an invoice that was previously synced to your accounting package is subsequently adjusted by write-offs in Halaxy, the invoice will not be resynced. You will need to make the write-off adjustments in your accounting package.

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