How do I write off vendor bills?

To write off vendor bills, you should first create an account and then record the write off. To create an account:

  • Go to Accountant on the left sidebar and select Chart of Accounts.
  • Click + New Account in the top right corner of the page.
  • Select Payment Clearing as the Account Type from the Account Type dropdown and enter Account Name as Purchase Write off.
  • Enter the Account Code and write a short description for the account, if required.
  • Click Save.

Next, you can record payment for the bill. Here’s how:

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

Next, to move the amount from Purchase Write off account to the desired account, you can pass a Manual Journal. Here’s how:

  • Go to Accountant on the left sidebar and select Manual Journals.
  • Click + New Journals.
  • Select the Purchase Write Off account as the Debit Account and credit the desired account.
  • Enter the Debit and Credit amount that needs to be recorded.
  • Click Save and Publish.

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