• Write Off is the term usually used to describe “bad debt.” This is accounts receivable the Firm has deemed to be uncollectible. It is up to the Firm to determine the frequency and standards used to decide when to use the WO code in Orion to write off bad debt.  In Orion we refer to WOs against AR as Write Off transactions.

• Write Down is the term used to describe relieving or removing transactions from work in process, WIP, through the billing process.  These transactions never get into AR.  In Orion, Write Downs are done through Bill Prep when you choose to bill a transaction for less than the original amount or choose to write it down entirely.

Firms often want reports on Write Offs and Write Downs in order to know how much they are not collecting for items that are considered “loans” or advances to Clients. At the time the Write Down or Write Off is done the Client Advances Written Off account is hit in GL.  It is at this point, once the GL transactions are approved and posted, that the system will recognize the Client Advances that are written off as expenses once they have hit the Client Advances Written Off account. Consult with your CPA to determine how the income statement will present this account and on how the reporting and timing of written off Client Advances should be handled. This has typically already been determined at the time of the Firm’s installation.

To get a detail report on Client Advances that have been written off you may run the Paid Disbursements Analysis Report and ask for Client Advances only.

To get a detail report of Client Advances that have been written down you may run the Billed Disbursements Analysis Report and ask for Client Advances only.