Write-off and recovery
Removing uncollectable loans from the portfolio, and recording recoveries afterwards.
- Confirm the write-off has been approved under your credit policy (often by the board).
- Open the loan and click Write off.
- Enter the date and notes recording who approved it and why.
- Save. The balance moves to the losses-written-off expense account (or against the provision) and the loan leaves the active portfolio.
Recoveries
Collection can continue after write-off. Money received is posted as a recovery repayment to the income-from-recovery account.
A write-off made in error can be undone, restoring the loan.
Tip
Write-offs are reported to most regulators and credit bureaus. Keep the board resolution on the loan’s documents.
Something unclear or out of date? Tell us and we'll fix it.