How do I write off vendor bills?

To write off a bill in Zoho ERP, you must first create a write-off account in the Chart of Accounts. Then, record a payment for the bill using this account to clear the outstanding balance. Finally, create a manual journal entry to record the write-off correctly and reflect the adjustment in your accounts.

To create a chart of account for the write-off account:

• Go to Accounting on the left sidebar.
• Click Chart of Accounts in the Modules bar at the top.
• Click + New Account in the top right corner.
• Select Payment Clearing as the Account Type and enter Purchase Write off as the Account Name.
• Enter the Account Code and provide a short description for the account, if required.
• Click Save.

Next, to record payment for the bill:

• Go to Purchases on the left sidebar.
• Click Bills in the Modules bar at the top and select Bills from the dropdown.
• Select the bill you want to write off and click Record Payment.
• Enter the necessary details.
• Click Payment Mode and select Configure Payment Mode.
• Click + Add New.
• Enter Adjustment Mode as the payment mode and click Save.
• Select the account as Purchase Write-Off in Paid Through.
• Click Save.

Next, to move the amount from the Purchase Write-Off account to the desired account, you can create a manual journal. Here’s how:

• Go to Accounting on the left sidebar.
• Click Journals in the Modules bar at the top and select Manual Journals.
• Click + New Journals.
• Select Purchase Write-Off account as the Debit Account and select the required credit account.
• Enter the debit and credit amounts that needs to be recorded in the Debits and Credits columns respectively.
• Click Save and Publish.
• Select the account as Vendor Balance Transfer in Paid Through.
• Click Save.