If a loan is not accruing interest, you can still apply payments to the loan, regardless of the loan status. Just compose the payment transaction as usual, press the Submit button, and make sure the loan balance is correct after the payment has been applied.
If a loan has been written off and the loan balance is zero, your accountant may have to be consulted as to how the payment is to be applied. If the loan balance is zero and the monies lost have been written off your company's taxes, the payment might have to go to a special G/L account such as "Collection of Bad Debt." In this case you might not even key the payment into our system, but directly into your G/L as a separate deposit. If you do want to enter the payment into our system, you might need to do a "negative write-off" to restore part of the principal, but your accountant will need to be informed, or your company's G/L, financial statements and taxes might be wrong. If you have any questions about taking payments on loans with zero balances, you might want to arrange a conference call between Alpha Omega, your accountant, and anyone in your company with input into the decision.