Write off Small Balances

Actionstep does not have a small balance write off feature. As such we do require that you use actual transactions to write off small balances. Each of these transactions would have an offsetting transaction to compensate.

Write off Small Balances on Client Invoices

Where you have a number of Clients who have small annoying balances (generally caused by rounding) we suggest you use the following method to avoid raising Credit Invoices for 1-5cents.

Receipt the balances into your Business Current Account as though the client has paid (eg, Accounting > Sales > Invoice, then click Make Payment). In the Journal memo put "Small Balance write off"

This of course will cause a deposit (or deposits) which will now be outstanding on the bank reconciliation. Simply create an offsetting bank withdrawal on the same date for the total of the write offs (this can be coded to a write off account or fees if you don't have one). Remember to set the tax correctly if you do charge sales tax.

Write off Small Trust Account Balances

There are times when a Trust Account may sit in credit by a nominal amount and your firm decides to clear it - this is likely to happen when the cost of paying the client the funds back is more expensive than the amount you owe them.

If the client has another matter - the funds should be transferred to that matter.

Where the client does not have another matter we suggest transferring these funds to a "Firms Matter" most firms will be running an internal matter for odd transactions and bank errors. Leave the funds sitting there until it is worth creating an internal invoice for the balance - then pay that invoice from Trust and move through to the current account.