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How do I write off vendor advance?

To write off vendor advance, you should first create an account and then record the write off. To create a new account:

  • Go to Accountant on the left sidebar and select Chart of Accounts.
  • Click + New Account.
  • Enter the Account Name as Advance write off.
  • Select Payment Clearing as the Account Type from the Account Type dropdown.
  • Enter the Account Code and write a short description for the account, if required.
  • Click Save.

Once you have created an account, you can write off the advance. Here’s how:

  • Go to Purchases on the left sidebar and click Payments Made.
  • Select the vendor advance which you want to write off.
  • Click More icon and select Refund.
  • Enter the necessary details.
  • Select the To Account as the Advance write off account you had created.
  • Click Save.

Next, to move the amount from the Advance Write off account to the desired account, you can create a manual journal. Here’s how:

  • Go to Accountant on the left sidebar and select Manual Journals.
  • Click + New Journal.
  • Enter the necessary details.
  • Select the Advance write off account as the Debit Account and Credit the desired expense account.
  • Enter the Debit and Credit amount that needs to be recorded.
  • Click Save and Publish.
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