Case VII: Writing off fully paid invoices with non-zero balance items
Learn how to write off fully paid invoices where each item still has a non-zero balance, including the creation of credit memos during the write-off process.
You want to write off an invoice that is fully paid but each of its items still has a non-zero balance.
The invoice originally had the total amount of $108, and it contained two invoice items and their corresponding taxation items. Later, you applied a payment with the total amount of $108 to invoice item 1 and taxation item 1.
For example:
|
Invoice/Item |
Amount |
Balance before write-off |
Balance after write-off |
|---|---|---|---|
|
Invoice item 1 |
$100 |
$10 |
$0 |
|
Taxation item 1 |
$20 |
$2 |
$0 |
|
Invoice item 2 |
$-10 |
$-10 |
$0 |
|
Taxation item 2 |
$-2 |
$-2 |
$0 |
|
Total |
$108 |
$0 |
$0 |
In this use case, no matter which option the Create credit memos mirroring invoice items billing rule is set to, the credit memo created during invoice write-off is as follows.
|
Credit memo/Item |
Amount |
Balance before write-off |
Balance after write-off |
|---|---|---|---|
|
Credit memo item 1 |
$10 |
$10 |
$0 |
|
Credit memo taxation item 1 |
$2 |
$2 |
$0 |
|
Credit memo item 2 |
$-10 |
$-10 |
$0 |
|
Credit memo taxation item 2 |
$-2 |
$-2 |
$0 |
|
Total |
$0 |
$0 |
$0 |