Create allowance for doubtful accounts in (ARS630)

Automatically create partial or complete write-offs of doubtful debts in accounts receivable, that is, an allowance.

Outcome

See Managing Allowance for Doubtful Debts.

Before you start

Before you start, you must meet these prerequisites:
  • The starting conditions for managing customer debts.

    See Managing customer debts.

  • The starting conditions for managing allowance for doubtful debts.

    See Managing Allowance for Doubtful Debts.

  • Define FAM function AR60 'Reserve for doubtful accounts' in 'FAM Function. Open' (CRS405). You must configure the book of account with voucher numbering method 2-'Automatically'.
  • Define the number series type DP in 'Number Series. Open' (CRS165). This number series is the proposal number used in (ARS630).
Note: You can exclude customers from the routine by enabling the parameter 'Exclude doubtful allowance' on a customer in the customer master.

Follow these steps

  1. Start 'Doubtful Accounts Allowance. Open' (ARS630/B).
    The panel contains the list of the previous proposals and their respective statuses. These are the statuses shown in (ARS630):
    • 'Proposal status': This field indicates the status of the proposal. These are the alternatives:
      • 10-'In progress': This is a temporary status set during the creation of a proposal.
      • 20-'New': This status is set when a proposal is created.
      • 90-'Confirmed': This status is set when a proposal is confirmed.
      • 99-'No records selected': This status is set when a proposal is created without any records.
    • 'Proposal progress': This field indicates the progress of the proposal. These are the alternatives:
      • 0-'The proposal can be processed'
      • 1-'Creation in progress'
      • 2-'Change in progress'
      • 4-'Delete in progress'
      • 6-'Printing in progress'
      • 9-'Update in progress'
  2. Create a new proposal:
    1. On panel (ARS635/E), specify these details and selection criteria:
      • To date: This is a required parameter. Specify the end date for selecting invoices. This date is also used as the accounting date.
      • Customer group
      • Customer
      • Invoice number
      • Auto update proposal
      • Voucher text
      • Name: This is a required parameter.
      • Report text
    2. Specify any of these selection criteria and press Enter:
      • If auto-update is disabled, the proposal is created with the possibility of reviewing the content before confirming the proposal.
      • If auto-update is enabled, the proposal is created and confirmed directly, without the possibility of making changes to the proposal.
      • When the proposal is created, you can review the content and delete a customer or invoice in 'Doubtful Accounts Allowance. Open Details' (ARS631) or 'Doubtful Accounts Allowance. Open Invoices' (ARS632), respectively.
      • You can also review the content in the proposal printout ARS633PF.
  3. Confirm a proposal.
    A proposal is confirmed either by creating a proposal with auto-update enabled, or by using related option 9-'Confirm' on an existing unconfirmed proposal. These steps ensure that the proposal is properly recorded:
    • When the proposal is confirmed, the general ledger and the accumulated depreciation amount in the balance file are updated.
    • To review the voucher, you can review the printout GLS041PF or use related option 7-'Display voucher' on the confirmed proposal.
    • To generate a new proposal printout, use related option 6-'Print proposal'. No cover page is given in this scenario.
  4. If a proposal gets stuck in a proposal progress, you can use correction ID AR14 in 'Program Problem. Solve' (CRS418) to reset the proposal progress in (ARS630). However, you cannot reset proposals with status 10-'In Progress'.
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