Write Off

 The Write Off option allows you to close out Pending records for vendor returns by charging the cost of the items to a specific general ledger account.  The Write Off option is used when the goods sent back to the vendor will not be replaced or credited by the vendor.

Pending records for vendor returns can be written off by performing the following steps.

•      Select the records to be cleared.  You may select one record by highlighting the record in the RTV Management program, or by tagging a single record using the Tagging option.  You may also tag multiple records.

•      Set the To Clear Quantity in the records to the quantity that is being written off.  The To Clear Quantity can be set by tagging the record (which will default the remaining open quantity into the To Clear field), or by using the Zoom option to activate the Pending Detail Panel – which allows you to set the To Clear value manually.

•      Select the Serial Numbers for any serialized items being processed.  The number of serial numbers selected for each serialized item being processed should be equal to the To Clear quantity in the records.

•      The value field in the records can be left at zero.  The system will determine the amount to be written off based on the quantity being processed, and the cost of each item (which is stored in the Pending record).

•      Press the Write Off Button.  When the Write Off Button is pressed, the system displays the PAUCODES Generic Code Table.  The PAUCODES table stores the write off codes that can be used in the Pending programs and the autopost number of the GL Account for each code.

•      Select the Pending Adjustment code to be used for the transaction.   

Once you have selected a valid Pending Adjustment code,  the system calculates and displays the value to be written off so the operator can confirm the amount.  If the amount is correct, the operator can select Yes at the prompt to continue the transaction, or they can select No in the prompt to abort the transaction.  If the Yes option is selected, the system writes off the selected records and it displays a prompt to indicate that the write off is complete.  This prompt also displays the journal entry number assigned to the transaction.

As the Write Off  transaction is processed, the system performs the following updates.

•      The Pending records for the items being processed are updated. The system updates the cleared quantity in each Pending record based on the quantity being processed and it changes the status of the record to closed if the entire quantity in the record is cleared.

•      The Serial records for the items being processed are updated and Serial History records are written to record the fact that the items were written off.  The Status field of the Serial records is updated to X (written off), and a Type PX (Pending write off) Serial History record is created for each serialized item being written off.  The description in the Serial History record is set to Writeoff.

•      Inventory Transaction records are written to record the Pending Write Off.  A Type PA (Pending Adjustment) Inventory Transaction record is created for each Pending record that is being written off.  The Inventory Activity record stores the name of the vendor associated with the record in the Company field and the quantity written off in the REF_QTY field of the transaction (the write off affects Pending, not inventory, so the REF_QTY field is loaded for this transaction type. 

•      A Journal Entry is made to post the Pending Adjustment transaction.  The journal entry is posted to the GL inventory account for the item based on the item product line, and to the writeoff account selected by the operator (the account is pointed to by the adjustment code selected for the transaction).  The Journal Entry amount is based on the quantity and the cost of each Pending record being processed (the pending cost is used as it may be different than the current cost of the item in inventory.

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Special Vendor Return Situations