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Write-off & its consequences

What does write-off mean, where and when do you do this, and what are the consequences?

Lennard Datema avatar
Written by Lennard Datema
Updated yesterday

Services that have been added to billable projects are automatically prepared at the right time in the invoicing module (and if you work on the basis of post-calculation, this also includes the registered hours and/or costs).

From here you can select these items, after which you can:

  • Invoice

  • Write off

Writing off items has major consequences

By writing off, you are essentially saying that you will not invoice these items. In fact, you are taking the recorded hours and/or costs at your own expense and therefore choosing to take the loss.

In Simplicate, you will see the consequences of write-offs reflected as follows:

  • Write-offs affect the project result: Read in this article how the project result is calculated.

  • Writing off hours increases the remaining budget

The formula for the remaining budget is: Budget - Spent - Planned - Corrections (a full negative correction = write-off).

  • Writing off hours affects employee billability

It means that an employee is less billable than productive. If you want to learn more about how to influence billability, see this article.

Example of incorrect write-offs

There can really only be one reason to write off items: you simply are not going to invoice them. If you still want to invoice the items in Simplicate in another way, then something is not quite right. In that case, contact Simplicate for advice.

For example: if you frequently write off hours collectively based on post-calculation, then something is not quite right. Especially when you then create a fixed price service or a manual invoice to still invoice this in another way.

In that case, it’s best to immediately create a fixed price service and transfer the hours to it. And of course, next time directly create a fixed price service.

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