It may happen that a client/debtor does not pay an invoice or does not pay it in full. Such an invoice would then remain as "unpaid" in the statements for a long time. In Legalsense it is possible to write off (mark as uncollectable) the (remaining) outstanding amount.
Attention: Writing off an outstanding invoice may only be done when, after investigation, no more payment is to be expected. We advise you to discuss a possible write-off with your bookkeeper/accountant.
(Partial) write-off of an invoice
As soon as payment of the invoice is no longer expected, you can write off the outstanding amount as uncollectable. You can do this by viewing the invoice in question in Legalsense:
After opening the invoice, select "Payments". An extra menu will be opened:
To mark the invoice as uncollectable, select "Mark as uncollectable":
After confirmation the invoice will be marked as uncollectable:
To write-off a partially paid invoice, the same method is used as described above.
Integration with accounting software
Writing off an invoice is only processed in Legalsense and will not affect the financial administration. This means that if an invoice in Legalsense is written off as uncollectable, this write-off must also be done in the financial accounting software.
Additional options have been added to the various reports to report on the executed write-offs. For example, in the list of invoices it is now possible to search on all invoices that are 'uncollectable':
In the report builder a filter and grouping has been added for the payment status. As of now you can filter and/or group by these new statuses in a report:
Also on the matter page it will be clear to the user whether an invoice has been paid or is uncollectable: