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Writing off an account balance with an A/R balance

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Valued Scholar

Writing off an account balance with an A/R balance

We have an account with a cancelled subscription that we expected would pay the remaining balance due.  They haven't and we are wanting to write-off that balance.  How can we do this without doing an invoice adjustment?  The balance is already reserved for in our financials and we don't want it to effect revenue.  I would like to do a one-time credit memo/negative invoice that hits our reserve account and not our revenue accounts.  Is this possible?

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Zuora Support Moderator

Re: Writing off an account balance with an A/R balance

@Mfischer - one way you could manage this would be to create a product with a rate plan and rate plan charge that would hit the desired account.

When adding it to the subscription, you would change the value of the product to the negative value.

Generate an invoice for that negative amount and it should hit the reserve account to offset the outstanding balance. 

 



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Guru

Re: Writing off an account balance with an A/R balance

Another Idea to contribute is that when you perform an invoice item adjustment you can override the accounting codes that the reversal impacts. Not sure the precise outcome you are trying to achieve, but trying this in your sandbox might yield the result you are looking for.

 

We tend to this behavior in our org so that we dont have invoices aging infinitely. After a certain period they get written off.

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Valued Scholar

Re: Writing off an account balance with an A/R balance

Thanks for this suggestion.  I didn't even know about this ability.