Workflow Template
Bad Debt Write-Off Approval Workflow
Captures bad debt write-off requests, routes them through finance recoverability review, tiered approval (finance manager under $5,000, finance director at/over $5,000), and posts the approved write-off, notifying the requester at each stage.
Bad debt write-offs often stall in email threads with no clear record of who reviewed recoverability or who approved the amount. This workflow captures each write-off request, routes it through a finance recoverability review, then sends it to the finance manager for amounts under $5,000 or the finance director for $5,000 and above, and posts the approved write-off with a journal reference. Finance teams run the review and approval steps, while requesters are notified by email at every stage.
Business Outcomes
- Helps standardise how write-off requests are captured and reviewed for recoverability
- Supports consistent tiered approval based on outstanding amount
- Reduces manual follow-up by notifying requesters automatically at each stage
- Makes it easier to track write-off status and history on a single record
- Helps finance keep a clear timeline of journal references and write-off dates
Workflow Steps
Steps
- 1Create Write-Off Request Recordcreate record
Registers the submitted write-off request as a record.
- 2Set Status to Submittedupdate record
Marks the record status as Submitted.
- 3Send Acknowledgement Emailsend email
Emails the requester an acknowledgement with their reference number.
- 4Set Status to Finance Reviewupdate record
Marks the record status as Finance Review.
- 5Finance Recoverability Reviewcreate task
Finance reviews recoverability and records a recommendation with comments.
- 6Save Finance Review to Recordupdate record
Persists the recoverability review, recommendation, and comments to the record.
- 7Route on Finance Recommendation
Branches based on whether finance recommends writing off the debt or continuing collection.
finance_recommendation: "Continue collection"→Set Status to Returnedfinance_recommendation: "Write off"→Route by Approval ThresholdDefault→Route by Approval Threshold - 8Set Status to Returnedupdate record
Marks the record status as Returned since collection is to continue.
- 9Send Returned Notificationsend email
Emails the requester finance's comments explaining that collection should continue.
- 10Route by Approval Threshold
Routes to finance manager approval for amounts under $5,000 or finance director approval for $5,000 and above.
outstanding_amount: "5000"→Set Status to Pending Manager Approvaloutstanding_amount: "5000"→Set Status to Pending Director ApprovalDefault→Set Status to Pending Director Approval - 11Set Status to Pending Manager Approvalupdate record
Marks the record status as Pending Manager Approval.
- 12Finance Manager Approvalrequest approvalrequires approval
Requests the finance manager's approval to write off amounts under $5,000.
- 13Route on Manager Approval Outcome
Branches based on the finance manager's approval decision.
approval_status: "approved"→Post Write-Off and Update Customer Accountapproval_status: "rejected"→Set Status to RejectedDefault→End - 14Set Status to Pending Director Approvalupdate record
Marks the record status as Pending Director Approval.
- 15Finance Director Approvalrequest approvalrequires approval
Requests the finance director's approval to write off amounts of $5,000 or more.
- 16Route on Director Approval Outcome
Branches based on the finance director's approval decision.
approval_status: "approved"→Post Write-Off and Update Customer Accountapproval_status: "rejected"→Set Status to RejectedDefault→End - 17Set Status to Rejectedupdate record
Marks the record status as Rejected since the write-off was not approved.
- 18Send Rejection Notificationsend email
Emails the requester that the write-off was not approved and collection should continue.
- 19Post Write-Off and Update Customer Accountcreate task
Finance posts the write-off, updates the customer's account status, and records the journal reference and date.
- 20Save Journal Reference and Dateupdate record
Persists the journal reference and write-off date to the record.
- 21Set Status to Written Offupdate record
Marks the record status as Written Off.
- 22Send Write-Off Confirmationsend email
Emails the requester that the debt has been written off.
Fields
Show all 14 fieldsShow fewer fields
FormBad Debt Write-Off Request
- Requester Name*· Text
- Requester Email*· Email
- Customer*· Text
- Outstanding Amount*· Number
- Invoice Reference(s)*· Text
- Days Outstanding*· Number
- Collection History*· Long text
- Why Recovery Is Unlikely*· Long text
TaskFinance Recoverability Review
- Recoverability Review Notes*· Long text
- Finance Recommendation*· Choice
- Finance Comments*· Long text
TaskPost Write-Off and Update Customer Account
- Journal Reference*· Text
- Write-off Date*· Date
Other fields
- Write-off Status· Choice
- Requester Name*
- Requester Email*
- Customer*
- Outstanding Amount*
- Invoice Reference(s)*
- Days Outstanding*
Forms
Bad Debt Write-Off Request
8 fields
Data Views
Write-Off Requests
customer_name, outstanding_amount, days_outstanding, writeoff_status
Dashboard Widgets
Recommended integrations
Setup the following integrations to extend workflow capability.
Send email in the workflow
AWS SES
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FAQs
How do I set up this workflow for my finance team?
Publish the template in your workspace and it's ready to use straight away, no installation needed. Assign your finance reviewer, finance manager, and finance director as members so tasks and approvals route to the right people. The request form is public, so requesters can submit write-off requests without needing an account.
How does the approval threshold decision work?
After the finance recoverability review recommends a write-off, the workflow checks the Outstanding Amount. Requests under $5,000 go to the finance manager for approval, and requests of $5,000 or more go to the finance director. This keeps larger write-offs with more senior sign-off without any manual sorting.
What happens if finance recommends continuing collection instead of writing off the debt?
The record status is set to Returned and the requester gets an email with finance's comments explaining why collection should continue. The recoverability review notes, recommendation, and comments are saved on the record so the reasoning is kept for reference.
What happens if the finance manager or director rejects the write-off?
The record status is set to Rejected and the requester is emailed to say the write-off wasn't approved and collection should continue. This applies whether the rejection comes from the finance manager's review of amounts under $5,000 or the finance director's review of amounts $5,000 and above.
Can I change the $5,000 approval threshold or add another approval tier?
Yes. You can describe the change in plain English, such as raising the threshold or adding a mid-tier approver, and the workflow updates accordingly. You can also edit the routing steps directly in the workflow editor, and earlier versions of the workflow are kept.
What gets recorded once a write-off is approved and posted?
When finance posts the write-off and updates the customer account, the Journal Reference and Write-off Date are entered on that task and saved to the record. The record status then changes to Written Off and the requester receives a confirmation email.
Does the requester need to log in to track their request?
No account is needed. Requesters submit through the public request form and receive email updates at each stage, including acknowledgement, returned or rejected notices, and the final write-off confirmation, each referencing the record's reference number.
How do I know where a request stands at any point?
Each write-off request is a record with a reference number, a current status such as Finance Review, Pending Manager Approval, or Written Off, and a timeline of everything that happened. Table views and dashboards let you see all requests grouped by status at a glance.
Who is involved in reviewing and approving a write-off?
A finance reviewer completes the recoverability review and records a recommendation and comments. Depending on the outstanding amount, either the finance manager or the finance director is asked to approve, and finance then posts the approved write-off and records the journal details.
Does this workflow help with audit or compliance requirements?
The workflow keeps a record of statuses, the recoverability review notes, approval decisions, and the journal reference and write-off date entered by staff, along with a full timeline of the request. Each business should confirm with its own advisors whether this record-keeping meets its specific compliance obligations.
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