Reverse a Bad Debt Write-Off

You can reverse a write-off if a client pays an invoice balance after your firm has written it off.

Reinstate an Invoice Balance (Accrual Basis)

To reinstate an invoice balance:

1. Locate the invoice. If you wrote it off in full, the invoice displays under paid invoices.
2. Note the total fees, Fee HST, Hard Cost, Hard Cost HST, Soft Cost, Soft Cost HST, Discounts, and Finance charges you must reinstate.
3. Click the the three dots at the end of the row and from the drop-down, select Change/Write-off Invoice.
   The Invoice Write Off screen opens. The Summary of Change/Write-off Entries lists items your firm wrote off.
4. On the Invoice Write Off screen, click Add.
5. In the Change Date field, enter the invoice reinstatement date.
6. In the Change Explanation field, enter an explanation for display on the invoice, if desired.
7. In the itemized area’s New column, for each item affected, enter the reinstatement total.
8. In the Notes column, enter the description as you want to display on the GL for this line item.
9. In the lower right corner, click Save.
   The system records your changes to the GLs indicated for each line item as of the change entry date.

Important to Know

• If the write-off reinstates the entire debt that was written off, then the invoice no longer displays a write-off. The GL displays the original invoice as of the created date, the write-off as of the assigned date, and the reinstatement as of the assigned date.
• If the write-off reinstates only a portion of the written off debt, the remaining write-off amount displays on the invoice. For example, if you write off $300, then reinstate $100, the invoice displays a $200 write-off. The GL displays the original invoice as of the created date, the write-off as of the assigned date, and the reinstatement as of the assigned date.
• The system credits items to the GLs indicated for each line item. Consult your accountant to determine what journal entry, if any, you must enter to change the GLs for the reinstated items.

Reinstate an Invoice Balance (Cash Basis)

To reinstate an invoice balance:

1. Locate the invoice. If you wrote it off in full, the invoice displays under paid invoices.
2. Beneath the toolbar, single-click the original invoice to highlight it.
3. Click the the three dots at the end of the row and from the drop-down, select Change/Write-off Invoice.
   The Invoice Write Off screen opens. The Summary of Change/Write-off Entries lists items your firm has written off.
4. Select the write-off you want to remove.
5. From the toolbar, click Delete.
   The Delete Waive message reads: Are you sure you want to delete selected items?
6. Click Yes.
   The system removes the write-off and marks the invoice unpaid.