Enter Write-off

Explanation

Use this activity to define the payment tolerances for customer payments which are included in a external payment of the specified payment method. You can specify tolerances for overpayments and underpayment in order to write off the difference between the total payment amount and the payment amount applied to the invoice installments. You can define the tolerances as an exact amount, e.g. to write off overpayment due to paid reminder fee. Also tolerance amounts and tolerance percentage can be defined as a limit, up to differences are automatically handled. For the differences to write off according to these parameters, difference items will be created when the invoices are automatically or manually matched, even though only one invoice is matched with the customer payment.

To enter write-off parameter for difference of an exact amount:

To enter write-off parameter for overpayments within the tolerance:

Note: In order to write-off differences due to invoices matched of another company, you need to specify the Difference Write-off information for the other company too.

To enter write-off parameter for underpayments within the tolerance:

Note: In order to write-off differences due to invoices matched of another company, you need to specify the Difference Write-off information for the other company too.

Prerequisites

In order to perform this activity, the external payment parameter must exist for the payment method.

System Effects

As a result of this activity, payment differences are written off by using customer difference items, if the difference is equal to an exact amount or within the tolerances defined in the external payment parameters. A difference that is automatically handled due to the tolerances defined for the company or customer, are written off directly for the affected invoice installment without difference item.

The payment difference is checked against the tolerances in this order:

  1. Exact amount, specified in External Payment Parameters.
  2. Tolerance for underpayment and/or overpayment, specified in External Payment Parameters.
  3. Tolerance for underpayment and/or overpayment, specified in Company and/or Customer, if the general matching parameter Consider Customer/Company Tolerances when Matching is selected.