The quick answer
Post an authorized journal that credits the customer’s A/R account, then apply that credit to the open invoices with a zero-dollar customer payment. Rerun aging using a date and scope that include both the journal and application.
The screenshots use sample data and fictional person and operating-company names.
Before you start
Confirm the approved write-off amount and accounting method first. This example uses a direct write-off expense account; an allowance method can use a reserve account instead. Tax treatment and authorization need separate review. You need access to journals, customer payments, and A/R aging. The journal period must permit posting.
01. Inspect the open invoices
Open Reports → Customer/Receivables → A/R Aging. Use the intended date and subsidiary, then choose View Detail for the customer. Juniper Workshop has INV-84621 for $825.00 and INV-84638 for $550.00, totaling $1,375.00.
02. Enter the balanced journal
Go to Transactions → Financial → Make Journal Entries. Review subsidiary, currency, date, and posting period. Enter Authorized balance write-off as Memo. Debit 6895 Uncollectible Accounts for $1,375.00 and credit 1215 Trade Receivables for $1,375.00. Select Juniper Workshop on the A/R line. Confirm equal debit and credit totals, then save and complete required approval. Continue only once the journal is posted and available for application.
03. Select the posted credit
Open the customer through Lists → Relationships → Customers and choose Accept Payment. Confirm the customer and A/R account. On Credits, select the posted journal. If it is missing, check posting status, customer, A/R account, subsidiary, currency, and date.
04. Apply it without receiving cash
Leave Auto Apply unchecked. On Invoices, manually select INV-84621 and INV-84638 for $825.00 and $550.00. Confirm total invoice applications and credits both equal $1,375.00, while Payment Amount remains 0.00. Save the application.
05. Rerun aging in the same context
Rerun A/R Aging with the same settings and a date that includes the journal and application. In this example, the September 7, 2026 report no longer lists Juniper Workshop as outstanding. Check individual invoice statuses separately before claiming that each invoice is fully settled.
Check the result
- Journal debits and credits both total $1,375.00.
- The saved application uses $1,375.00 of credit and no cash.
- The report date, subsidiary, and account context match the comparison.
Common questions
Why is an invoice still open after I post a write-off journal?
Posting the journal creates the A/R credit but does not necessarily apply it to an invoice. Use a customer payment with Payment Amount of 0.00 to apply the credit. Confirm the journal is posted and matches the invoice’s customer, A/R account, subsidiary, currency, and amount.
How do I apply an A/R journal credit to customer invoices?
Open the customer’s payment screen, select the posted journal on Credits, leave Auto Apply unchecked, and manually select the target invoices. Apply equal amounts so the credit and invoices total the authorized write-off. Available fields and required approvals depend on account configuration and role permissions.
Why is the customer payment amount zero?
The payment is an application record, not a cash collection. The journal credit offsets the selected invoices, so no money is received. For the example, 1,375.00 of credit offsets 1,375.00 of invoices while Payment Amount remains 0.00.
What should I check if the journal does not appear on Credits?
Verify that the journal is posted and approved when required, and that its A/R line identifies the correct customer and account. Also compare subsidiary, currency, date, and amount with the payment and invoices. Visibility can vary by role, period controls, and account configuration.
Supporting sources
Oracle NetSuite: Accepting a Customer Payment to Write Off Bad Debt.