All or a portion of a liability instruction line item can be written off so that the nominee is no longer responsible for the amount that has been written off. For example, if a person declares bankruptcy, all or a portion of that person's debt to the organization can be written off.
The amount of a write-off can be equal to or less than the outstanding amount of the liability instruction line item.
In an integrated financial environment, the ability to write off all or a portion of a client's liability is the responsibility of the ERP financial system.