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accountingnwt
September 3, 2024
Question

Comp Write-Offs

  • September 3, 2024
  • 1 reply
  • 0 views

We have a customer that is also a vendor. When they pay their invoices, they tell us how much they are using as a comp write off. For example, they owe $20,000 but send a payment for $15,000 and are taking a comp write-off of $5,000. How do I record they comp write off and also apply the same amount to their invoices to us to reduce the amount that we owe them?

1 reply

R
rvrfrf
September 3, 2024

Thanks for reaching out to the Community, accountingnwt. I appreciate your detailed information.

 

To properly identify how you should record your customer's comp write-off and apply it to their invoices, I'd recommend working with an accounting professional.  If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

 

Here's how it works:

 

  1. Go to our Find a ProAdvisor page.
  2. Use the City or ZIP search field to specify a location.
  3. Select Find a ProAdvisor.
  4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.

 

Once you've found an accountant, they can be contacted through their Send a message form:
 

  1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
  2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
  3. Select Send message.

 

I've also included a detailed resource about write-offs which may come in handy moving forward: What is a Tax Write-Off in Accounting?

 

If there's any additional questions, I'm just a post away. Have a wonderful Tuesday!

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