Dynamics GP Tip of the Month: How to use the Write Off Documents feature

Small customer underpayments and overpayments can quietly clutter your receivables and create unnecessary cleanup work at month-end. Fortunately, Microsoft Dynamics GP includes a Write Off Documents feature designed to efficiently handle these minor balance discrepancies, without manual adjustments.

This tip of the month blog walks through how the Write Off Documents feature works, when to use it, and how to ensure the correct posting accounts are applied.

The Write Off Documents feature in Microsoft Dynamics GP allows you to automatically write off small outstanding debit or credit balances by creating and applying credit memos or debit memos. This is especially useful when customers slightly overpay or underpay invoices and the remaining balance isn’t worth additional follow-up.

Key benefits include:

• Cleaning up small AR balances quickly.
• Automating memo creation and application.
• Using predefined posting accounts for consistency.

Posting accounts for write-offs can be pulled from either Customer Account Maintenance or Posting Account Setup, depending on your configuration.

1. Navigate to Write Off Documents
   Tools > Routines > Sales > Write Off Documents
2. Configure write-off criteria
   In the Write Off Documents window, you can define how the process runs:

    

   • Write-off limit – Sets the maximum outstanding balance eligible for write-off.
   • Cut-off date – Includes documents posted on or before this date.
   • Create memos by – Choose whether to create one memo per customer or per document.

When processed, Dynamics GP automatically creates and posts debit or credit memos and applies them to the qualifying documents.

3. Understand write-off limits
   There are two levels of control to be aware of:
   • Write-off limit (Window-Level):
     Includes documents with outstanding balances less than or equal to the amount entered.
   • Maximum write-off amount (Customer-Level):
     Defined per customer in Customer Maintenance Options
     (Cards > Sales > Customer > Options)

   Both limits must allow the write-off for the document to be processed.

4. Verify posting accounts
   Dynamics GP determines write-off posting accounts in the following order:
   1. Customer Maintenance Accounts
      Cards > Sales > Customer > Accounts
      (Write-offs field)
   2. Posting Account Setup (Sales Series)
      Tools > Setup > Posting > Posting Accounts

   Separate accounts are used for:

   • Write-offs (underpayments)
   • Overpayment write-offs (overpayments)

   Ensuring these accounts are set up correctly helps maintain clean and accurate financial reporting.

Using the Write Off Documents feature helps keep Accounts Receivable tidy, reduces manual cleanup, and improves efficiency during month-end close. Instead of carrying small balances forward, or adjusting them one by one, you can resolve them quickly and consistently. If you’d like help setting up write-off limits, posting accounts, or best practices for your Dynamics GP environment, our experts can help. Contact our team today, we can make sure this feature is configured correctly and working for your business. And be sure to check back next month for our next GP tip.