Write-Off and Recoveries

Write off a loan that will not be repaid, then record and correct what is recovered later.

Workflow

  1. 1

    Set the policy

    Owners and admins set how far behind a loan must be under Settings → Loan Defaults → Write-offs → Minimum days past due. Until a loan reaches it, the Write off button is shown disabled with the reason.

  2. 2

    Write the loan off

    An owner, admin or branch manager opens the Active loan and chooses Write off. Write off this loan shows the principal, interest, fees and penalties that will be written off. Enter the Reason and choose Write off loan.

  3. 3

    Approval

    The page shows A write-off of this loan is waiting for a checker in the approvals queue. When a checker approves it, the loan shows Written Off.

  4. 4

    Record a recovery

    When money comes in later, choose Record recovery on the written-off loan, pick the Organization Account, enter the Amount, Payment Method, Reference and Notes, and save. Recoveries are listed on the loan's Money tab.

  5. 5

    Reverse a wrong recovery

    Choose Reverse on the recovery, give the Reason and choose Reverse recovery. The row shows Reversal awaiting approval until a checker decides. A guarantor's recovery is corrected from the guarantee instead.