# Writing Off an Unpaid Balance

Source: https://docs.astalty.com.au/guide/finance/payments/writing-off-an-unpaid-balance

> Clear the remaining outstanding amount on a partially paid invoice by recording a payment for the shortfall.

## Overview

Sometimes you receive a part payment on an invoice and decide not to chase the rest. Astalty does not have a dedicated write-off, bad debt, or credit note feature, so there is no button that clears the shortfall for you.

Instead, you record a second payment for the remaining balance and allocate it to the invoice. Once the allocations against an invoice add up to the invoice total, the invoice moves to **Paid** and the shortfall drops out of **Total Outstanding** on the Invoices page.

> **This changes the invoice status in Astalty only**
>
> The balancing payment does not create a credit note, bad debt entry, tax treatment, or transaction in an external accounting system. Confirm the accounting treatment for your organisation and record any required external entry separately.

The invoice total itself never changes. Astalty always recalculates an invoice total from the charges on it, so the write-off is represented by the extra allocation rather than by reducing the invoice - your original invoice amount stays intact for reporting.

> **Plan managed and self managed invoices only**
>
> These steps apply to plan managed and self managed invoices. For an NDIA managed invoice, use the [NDIA receipt-file process](https://docs.astalty.com.au/guide/finance/payments/reconciling-ndia) instead.

## Before you start

Open the invoice and note the exact amount still owing, shown as **Amount Due** on the invoice. This is the figure you will record as the write-off.

## Recording the write-off

1. Go to [Payments](https://app.astalty.com.au/finance/payments) in the Finance section and click **Add Payment**.
2. Enter the **Date** for the payment.
3. Choose the **Type** that matches the invoice - *Plan Managed* or *Self Managed*. If you choose Plan Managed, also select the relevant Plan Manager.
4. Use the **Reference** field to label the payment clearly, for example `Write off` or `Write off - I-001-0002`. This is how you will recognise it later, so it isn't mistaken for money actually received.
5. Enter the outstanding amount in the **Amount** field.
6. Click **Add Payment** to save it.
7. In the **Allocations** list, find the invoice you are writing off. Partially paid invoices appear here, and the **Outstanding** column shows the amount still owing.
8. Enter that outstanding amount in the **Paid Amount** field against the invoice.
9. Open the invoice again to confirm it now shows an **Amount Due** of $0.00 and a status of **Paid**.

For a full walkthrough of creating and allocating a payment, see [Plan and Self Managed Payments](https://docs.astalty.com.au/guide/finance/payments/plan-and-self-managed).

> **Do not use Mark as Paid on a partially paid invoice**
>
> **Mark as Paid** records a payment for the **full invoice amount**, including any amount already paid.
>
> For example, a $1,000 invoice with $400 already paid receives another $1,000 allocation. It is now overpaid by $400 and shows a negative **Amount Due**. The status can still show **Awaiting Payment** or **Overdue**.
>
> Use the steps above instead. Mark as Paid is only suitable for an invoice that has no payments recorded against it yet.

> **The write-off is recorded as a payment**
>
> Because the write-off is a payment in Astalty, it appears in the Payments list and in the [Payment Allocations Export](https://docs.astalty.com.au/guide/exports/payment-allocations-export) and [Invoices Export](https://docs.astalty.com.au/guide/exports/invoices-export). A clear reference keeps it distinguishable from genuine receipts.
>
> If you use Xero, MYOB or another accounting package, record the write-off there as well so your accounts reconcile. A payment created manually in Astalty does not write the amount off in your accounting system.

> **Not received any payment at all?**
>
> If no payment has been received and you want to cancel the invoice entirely, void it instead of writing it off - see [Voiding Invoices](https://docs.astalty.com.au/guide/finance/invoicing/invoices/voiding). An invoice that has a payment allocated to it cannot be voided until that payment is removed.

## Changed your mind?

A write-off can be reversed. Delete the payment, or set its allocation against the invoice back to $0.00, and the outstanding amount returns to the invoice. See [Deleting Payments](https://docs.astalty.com.au/guide/finance/payments/deleting).

If you used **Mark as Paid** on a partially paid invoice by mistake, look for a negative **Amount Due** on the invoice or a negative **Outstanding** amount on the Invoices page. Delete the extra payment, then record only the remaining balance. Follow the steps above if you intend to write it off, or [record the payment received](https://docs.astalty.com.au/guide/finance/payments/plan-and-self-managed) if the balance has been paid.