"Writing-Of Balance" means to take a current outstanding balances associated with one of the Guardian Payment Accounts and permanently transfer it to the Subledger Account called BADDEBT. At this point the balances are effectively eliminated from the original subaccounts (e.g. 101-Tuition) and the effected Payment Account balance becomes zero.
Write-off's are necessary when charges in these accounts are deemed "uncollectible". By placing the balance into the BADDEBT account you are effectively declaring it uncollectible and the business will take the loss.
Reports can be produced that can summarize BADDEBT transfers for tax purposes at the end of the year. Of course, this is important because there are beneficial tax consequences for the business when write-offs are factored in to your bottom line.