There are three ways to submit a write-off transaction:
(1) If you want to leave the loan balance "as is" and simply record the fact that the loan has been written off, submit a zero dollar amount transaction with the date of the write-off, a transaction type of "Write-Off," and a zero dollar amount.
(2) If you want the loan balance to go to zero, submit a transaction with the date of the write-off, a transaction type of "Write-Off," and a dollar amount equal to the current loan balance (principal plus all unpaid fees and interest).
(3) If you want to do a partial write-off, submit a transaction with the date of the write-off, a transaction type of "Write-Off," and a dollar amount equal to amount to be written off. For instance, if you want to write off the fees and interest, dropping the loan balance to principal only, submit a dollar amount equal to the unpaid fees and interest. Because you might later elect to write off the principal only, you might want to enter a note like "Write off fees & interest."
For reporting purposes, the loan is considered to be a write-off based on the FIRST write-off transaction submitted.