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.