I usually recommend entering a credit or write off. This gives better tracking.

Credit makes the most sense. SOme of the Vendors let you appeal the bill in which case you should wait until the final decision. If that's not an option, and you have been paid, then yes, credit. This way, if it's time written off the timekeepers still get credit for the work they did.

Laurie! Great to "see" you again.

I usually recommend a Write Off when you bill something legitimately, but don't get paid after you send it for whatever reason, and a Credit when it is more of a courtesy that I am extending at the time I generate the bill. But that's just me. Since I am cash basis, it really doesn't matter and either one would be appropriate in this situation.

I do not have my clients clear and regenerate the bill to match what the audit house approves for payment. And Marc is correct! If you feel that you should not have had the amount deducted, there should be some sort of appeal process via the audit house.

Thanks, Marc, Caren and Nancy! We are not going to appeal (not my decision), so I will either write-off or credit. (We run on a cash basis, too, so not much difference.)

-laurie