How do I write of a vendor’s opening balance?

To write off a vendor’s opening balance, you’ll have to:

You have to create an account through which you can track the written-off opening balance. Here’s how:

Go to the Accountant module on the left sidebar and select Chart of Accounts.
Click + New Account in the top right corner of the page.
In the Create Account pop-up:
- Enter a suitable Account Name, for example, Opening Balance Write Off.
- Select Payment Clearing as the account type from the Account Type dropdown.
- Enter the Account Code and provide a short Description for the account if required.
- Click Save.

You have to record a payment to offset the vendor’s opening balance and account for the noncollectable debt. Here’s how:

Go to the Purchases module on the left sidebar and select Payments Made.
Click +New in the top right corner of the page.
On the Record Payment page:
- Select the vendor whose opening balance you want to write off from the Vendor Name dropdown.
- Select Opening Balance Write Off from the Deposit To dropdown.
- Enter the amount in the Vendor opening balance row in the Unpaid Bills section.
- Enter the other necessary details and click Save.

You have to create a manual journal to pass of the opening balance write off as a bad debt. Here’s how:

Go to the Accountant module on the left sidebar and choose Manual Journals.
Click +New Journal in the top right corner of the page.
On the New Journal page:
- Select the account from which the amount is debited (Opening Balance Write Off) and the account to which the amount is credited (Bad Debt).
- Select the vendor with whom you want to associate the journal entry.
- Enter the Debit and Credit amount. Ensure that the debited amount equals the credited amount.
- Click Save and Publish.

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