User wants to write off remaining amount of Invoice. This can be done by using Credit Memos. However, ensure that the Invoice being written off do not contain Inventory Items because this will have an effect on the Cost of Goods Sold account.

Expected result after follow the steps from Solution:

• Invoice Status: Fully Paid
• Credit Memo Status: Fully Applied
• Credit Memo will not show in the A/R Aging Report
• Accounting impact of the Credit Memo would be: Debit: Expense Account selected in Step 6 and Credit Accounts Receivable.

1. Go toLists>Accounting>Items>New
2. ClickDiscount
3. Item Name/Number:EnterName
   Example: Write Off Discount Item
4. Rate:Enter0
5. ClickAccounting
6. Account:SelectAccount
   Note:Select the expense that would be related to the discount item.
7. OpenInvoice
8. ClickCreditbutton
9. ClickItems
10. ClickClear All Linesbutton
11. Item:SelectDiscount Item
12. Amount:EnterAmount to be written offfrom the Invoice
13. ClickSave