---
title: 'Workflow: IOUs (money you owe or are owed)'
description: >-
  The three ways to close money you are owed — record a repayment, write off the
  rest, or cancel the IOU — and when each one is right.
sidebar:
  icon: users
---
Every franc has to land somewhere, so there are exactly three ways to close an IOU:

## Add repayment [#add-repayment]

Use when **real money actually moved**. Opens the Add form pre-filled with the open amount and counterparty; the new transaction is linked to the original. Once the linked amount covers the original, the IOU auto-settles.

## Write off [#write-off]

Use when you **no longer expect the money** — or when you got back **more than you laid out**. The expense and every recorded repayment are assigned to a category, so the budget is charged what it actually cost you (expense minus repayments). **No** transaction is created and no real money moves.

## Cancel [#cancel]

Use when the IOU **shouldn't have existed at all** (mis-flagged, duplicate). Removes the IOU flag entirely; the transaction stays an ordinary transaction.