What is a Change/Write-off?


In CosmoLex, a discount is intended for amounts you choose to deduct at the time of creating an invoice, or before finalizing the invoice. To learn about discounts, please Click Here.

However, if there are necessary changes to be made after the invoice has been delivered to the client, or after the firm has received partial payment, the Change/Write-Off function will help you record them properly for your records.

Applying a Change/Write-off to an invoice allows you to keep the original invoice record, while making a new record to reflect any changes after the fact. 


Topics


How to Apply a Change or Write-off to an Invoice


Step 1: Start from the Matters Screen, and double-click on your matter to see the matter details

Step 2: Find your invoice and click Action -> Change/Write-off

Step 3: Complete the Change/Write-off form (for more info, see below)

  • Select your "change" date
  • Enter an explanation if necessary
  • Click Write-Off full remaining balance or select which field you'd like to update (i.e. remove $50 from Fee Income) and enter a note if needed

Step 4: Click Save


Write-Off Remaining Balance



OR


Make a change to an individual field



Understanding How The Change/Write-off Action Works


  • When should I use the Change/Write-off action?
    • Bad Debt / Waiving Balance - when you know you will not be receiving the remaining balance of the invoice, you can use this action to write-off the amount. (For cash-basis accounting, this will update your AR reports)
    • Individual Changes - if you've already delivered an invoice to your client, or received partial payment, you'll want to handle changes appropriately. The change/write-off action allows you to make changes without losing the original record of the invoice. You can increase or decrease any of the original invoice field amounts. Your invoice balance will be updated, and any future payments you receive will be allocated appropriately. 


  • How do I fill out the Change/Write-off form?
    • Select the change date and enter a change explanation
    • When writing off the full balance, select Write-off Full Remaining Balance
    • When making individual changes - manually calculate the changed needed. The form will not make calculations for you. For example, if you are including taxes in your invoice, make sure you make calculations needed and update all of the appropriate fields
      • You can either enter a new value or enter increase or decrease amount in the change column. Both will provide the same result. For decreases, enter a negative sign and then the amount (i.e. -20.00)


  • How can I edit previous Change/Write-off actions?
    • Find the invoice in questions -> Select Action -> Click Change/Write-Off
      • Here you will see any previous changes you've made and you will be able to edit or delete


  • Who can use the Change/Write-off action?
    • Only users with permissions to edit invoices are able to use this action.


  • How can I see the original invoice - without the Changes?
    • On the invoice screen, click Print Multiple -> click on Advanced Settings at the bottom -> Click the checkbox to remove "Include affect of Write-off amount (if any)"


  • How can I apply payment to a previously waived invoice?
    • Create a new invoice or Locate the old invoice, make a change/write-off or edit a previous change, and receive the payment

Viewing Reports for Changes and Write-offs


Below is a list of reports that will possibly be affected by adding a change or write-off to your invoice. 

  • Billing
    • Invoice Journal
    • Invoice Change/Write-Offs - Journal
  • Financial Reports
    • For Cash-basis accounting - only your AR reports will be affected
    • For Accrual Accounting - your General Ledger, and all financial and tax reports will be updated