How to Write Off Purchase Ledger Invoices

Sometimes invoices on the purchase ledger need to be written off, either in full or partially. This is done by raising a credit note for the value you want to remove and coding it to a write-off account.

Steps to Write Off a Purchase Ledger Invoice

1. Raise the Credit Note

1. Go to Accounts > Purchase Ledger > Post Invoice.

2. Enter the account number.

3. Enter a credit note reference.

4. Enter the amount being written off as a negative value.

2. Code the Credit Note

1. In the nominal code section, enter your write-off nominal code (for example, 0.0.40.7 or a similar account).

2. Add a reference to explain the write-off.

3. Press Add.

3. Post the Transaction

• Once the details are entered, post the transaction to complete the credit note.

4. Clear the Invoice and Credit Note

1. Post a zero payment.

2. Select both the original invoice and the credit note.

3. This clears both entries from the account.

Why This Matters

Writing off purchase ledger invoices correctly ensures:

• Your supplier accounts remain accurate and up to date.

• Old or uncollectable invoices do not distort balances.

• The write-off is properly coded for reporting and audit purposes.