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Managing Dunning

Derecognizing an invoice​

When an invoice can no longer be collected, it can be derecognized – either manually or automatically after the last dunning level. The open amount is then written off as a bad debt.

What happens in Wallee Portal:

  • The system automatically creates a refund of type Customer Initiated: Automatic with the external ID derecognized-invoice-<invoice ID>.
  • This refund is booked offline – no money is paid out to the customer. It only offsets the amount that is still open on the invoice (not the full invoice amount).
  • In the portal, the refund is shown as a reversal initiated by the customer, and the customer is shown as having reversed payments. This is why a derecognized invoice can look like a chargeback.
  • Derecognize is no longer possible once the invoice has been partially paid.
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Derecognize is meant for uncollectible receivables. To cancel an invoice without booking a loss, see Account Receivables / Account Payables.