What is the difference between a Write Out, a Write Off and Write Back?
Article ID
ias-11912
Article Name
What is the difference between a Write Out, a Write Off and Write Back?
Created Date
24th April 2015
Product
IRIS Time and Fees
Problem
What is the difference between a Write Out, a Write Off and Write Back?
Resolution
Contents
- Write Out
- Write Off
- Write Back
Write Out
When an invoice is posted the Write Out field issued to reduce WIP. For example, if the WIP balance is £800 and you enter £100 in the Write out field, then the balance will be reduced to £700.
A Write out instruction directly affects the recovery of the invoice. The billed value less the Write Out instruction calculates the recovery of the invoice, this may lead to an over recovery or an under recovery depending on the billed amount. For example, if a client has a £300 WIP balance, and they need to be invoiced the £300, then you could post a bill for a write out amount of £300 and bill them £300, thus the recovery for that posting would be nil.
Write Off
A WIP Write Off can be posted in Time Ledger to remove Time and Expense from a client’s account. It is used when the client cannot or will not be able to pay for the outstanding WIP, thus noted as bad debt. A Write Off will always produce an under recovery.
For example, if a client has £300 WIP balance and you no longer act for them. As you cannot invoice the client, you may decide to post a Write Off to clear that Clients WIP as you do not expect any funds from him. Post a Write off will produce an under recovery of £300, i.e. 100% under recovery on the outstanding WIP.
Write Back
A WIP Write Back is a debit (positive) posting ‘written back’ to the Time Ledger. It can either be produced by a Credit note posting or un-matching WIP from an invoice.
For example, if a credit note is posted for £300 to reduce a bill value by £300, a write back is posting will be created for the £300 on Tie Ledger to account for the recovery change.
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