Often times, you may have clients that can no longer make payments towards their invoices. In this situation, you do not want to simply apply an operating payment to pay off the invoice, as this will skew your operating account reporting. Instead we'll write-off this outstanding balance to waive it for your clients.
To zero out an invoice without using a physical payment, please apply a credit note by following these simple steps:
1) Open any outstanding invoice.
2) Click the green "Actions" button, and click "Write Off".
What happens now?
A credit note will be automatically created and applied to this invoice, zeroing out the balance. You can find a list of all credit notes by matter here and changing the first filter from "All Invoices" to "Credit".