This instruction explains how you automatically create partial or complete write-offs of doubtful debts in accounts receivable; that is, an allowance.
The starting conditions listed in Managing Allowance for Doubtful Debts must be met.
Start ‘Doubtful Account. Create Allowance’ (ARS130/B).
The panel lists previous allowances and proposals with their respective statuses. The following statuses are used:
0 = The proposal is created and can be processed
1 = The allowance/allowance proposal is being created
2 = The proposal is being changed by another user
4 = The proposal is being deleted
9 = The allowance is created and the general ledger is updated.
Specify Name and Selection Criteria
Create a new allowance proposal by giving it a name. The name can consist of up to eight alphanumeric characters.
Panel (ARS130/E) is activated. Enter a description (required field), the report layout and the report text to use as a heading.
At present only report layout 1 is available.
Enter any of the following ranges and press Enter: Customer group, customer number, and invoice number.
On the B panel, where the new allowance setup is displayed, select one of these alternatives:
Create Allowance Proposal
On panel (ARS130/B), specify option 9=Run for the allowance setup.
On the E panel, enter the following values:
Enter the required values and press Enter to create the proposal and to print a preliminary accounting journal.
Adjust the Allowance Proposal
Review the proposal to see a) which invoices are classified as doubtful debts, and b) how the general ledger will be updated.
Select an alternative:
Create a Final Allowance for Doubtful Debts
On panel (ARS130/B), select option 9=Run for the proposal.
On panel (ARS130/E), change any of the parameters entered when creating the proposal, if necessary, and make sure that the value in the Proposal/update field is 1=Update.
Press Enter to create the final allowance and to return to panel (ARS130/B).