Interim - How to proceed with an AR Write-Off for Interim Invoice

QUESTION: I am trying to write off an interim invoice by issuing a credit note but Acumin would not allow me . Please advise what’s the best way to write it off.

RESPONSE: Acumin does not permit AR Write-Offs for Interim Invoices. To clear an unpaid balance on an Interim Invoice, you’ll need to apply a Credit Note instead.

Please note that Interim Invoices can be credited and cancelled—as long as they haven’t already been applied as a reduction to a posted invoice or one currently in progress.

If the Interim Invoice has already been applied, an alternative approach is to process a $0.00 General Deposit for the final invoice. You can then allocate the payment as usual and the negative amount to an expense GL account. This will remove the balance of the final invoice from your receivables list.

It may also be helpful to revisit the cash allocation on the final invoice, particularly if the Interim Invoice was treated as cash received.