Minimum Version Required: 22.07
Pre-Conditions
A Non-Inventory Product should already be created to be used as the AP Write-Off Product.
Expense Account Mapping should be set for your Auto AP Write Off Product to define the flow in your general ledger.
Steps
How to Automate an AP Write-Off
1. Using Universal Search, navigate to the AP Terms table.
2. Either search and select or create an AP Term to be used for Auto AP Write Offs.
3. Locate the Auto AP Write Off Limit field and click the Pencil icon to edit.
4. Enter a $ amount to establish the maximum Write Off threshold
Example: If Auto AP Write-Off Limit is set to $1.00, then all Purchases with a Total of <= $1.00 and >= ($1.00) will qualify.
5. Set the Auto AP Write-Off Product - the non-inventory product used to write off the remaining balance.
6. Click Save Changes/Add Record.
7. The Auto AP Write-Off Product is added when the Purchase is Received and calculated again when the Purchase is Confirmed.
Fields And Definitions
Auto AP Write Off Limit: The maximum $ value, positive or negative, to be cleared using the Auto AP Write Off Product.
Auto AP Write Off Product: The non-inventory Product that will be added to the Purchase to clear the Total (within the Auto AP Write Off Limit).
Expense Account Maps: Where non-inventory products are mapped to a General Ledger Account.
Best Practices
The Auto AP Write-Off Product is added when the Purchase is Received and calculated again when the Purchase is Confirmed. Outstanding debits or credits within that amount for any Purchase with that term will automatically be written off, using the product identified on the AP Term.