What is 'write off' in SAP FI-CA - Contract Accounts Receivable and Payable?

write off - Overview

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: A business transaction in which an item in a customer's account is cleared against a write-off document. In this case, the amount is posted as a loss.

write off - Details

• 
  Key Concepts:
  Write off is a process in the FI-CA Contract Accounts Receivable and Payable component of SAP that allows users to reduce the amount of an open receivable or payable item. This process is used when the full amount of the item cannot be collected or paid, and the user wishes to reduce the amount to a more realistic figure. 
  
  How to use it:
  Write off can be used in SAP by navigating to the FI-CA Contract Accounts Receivable and Payable component, selecting the item to be written off, and entering the new reduced amount. The system will then update the open item with the new reduced amount. 
  
  Tips & Tricks:
  When writing off an item, it is important to ensure that all relevant documents are updated with the new reduced amount. This will ensure that all future transactions related to this item are based on the correct amount. 
  
  Related Information:
  Write off is closely related to other processes such as write back and write down. Write back is a process in which an open item is increased in value, while write down is a process in which an open item is decreased in value.