---
title: "Overview"
slug: "write-off-allocations-overview"
updated: 2023-11-14T13:04:07Z
published: 2023-11-14T13:04:07Z
canonical: "docs.blackthorn.io/write-off-allocations-overview"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.blackthorn.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Overview

When an Allocation with **Type** = “Write Off” is created, then the related Invoice’s **Write Off Amount** field will include - “the sum of all the amounts in the Invoice’s related Line Item’s **Amount Written Off** fields.”

The Invoice’s **Balance Due** should be reduced by the Invoice’s **Write Off Amount**. (Invoice **Balance Due** = Invoice **Total Amount** - (Invoice **Balance Paid** + Invoice **Write Off Amount**))

If a Transaction with **Transaction Type** = “Write Off” is created, then an Allocation with **Type** = “Write Off” will be created.

When a Transaction with **Transaction Type** = “Write Off” and an **Amount** less than the Invoice’s **Balance Due** is created, then a related Allocation record with **Type** = “Write Off” will be created.

If a Transaction with **Transaction Type** = “Write Off” or **Transaction Type** = “Charge” is created and the Transaction **Amount** = Invoice’s **Balance Due**, then an Allocation with **Type** = “Write Off” will be created and the Transaction with **Transaction Type** = “Charge” will have Transaction’s **Payment Status** = “Captured”.

When the Invoice’s **Balance Due** = ”0”, then the Invoice **Status** = “Completed” and the Transaction’s **Payment Status** = “Paid”.

## Create a Write-off Allocation

1. Go to Custom Setting > Blackthorn Pay – Trigger Settings.
2. Set **Automatically Create Allocation** = “True” (checked).
3. Create an Invoice with one or more Line Items that have a **Balance Due**.
4. Create a Transaction with **Transaction Type** = “Write Off”.
5. Verify a related Allocation record was created.
6. Create a new Transaction with **Record Type** = “Charge”  

a.	Enter an **Amount**.  

b.	Change the **Transaction Type** to “Write Off”.  

c.	Change **Transaction Status** to “Complete”.
7. The Invoice’s **Write Off Amount** = “the sum of all the amounts in the Invoice’s related Line Item’s **Amount Written Off** fields.”
8. Invoice’s **Balance Due** = Invoice **Total Amount** - Invoice **Write Off Amount**
9. TheInvoice’s **Status** should change to “Completed” when the **Balance Due** = “0”.
10. The **Payment Status** will update to “Partially Paid` once the **Balance Due** is less than the **Total Amount**. The **Payment Status** will update to “Paid” once the **Balance Due** = “0”.

### Rollup Allocation Amounts and the Invoice Payment Status

When an Invoice is manually charged through a Transaction with **Transaction Type** = “Write Off”, the following is true.

- The Invoice **Write Off Amount** value is the same as the Allocation’s **Amount** field.
- An Allocation record with **Type** = “Write Off” is created.
- The Line Item **Amount Written Off** value is the same as the Allocation’s **Amount** field.

When an Invoice is manually captured, the following in true.

- The Line Item **Balance Paid** is the same as the Allocation (**Type** = “Payment”)’s **Amount** field.

When an Invoice with the **Payment Status** set to “Paid” or “Partially Paid” is refunded, the following is true.

- The Line Item **Amount Refunded** is the same as the Allocation (**Type** = “Payment”)’s **Amount** field.