how2ar01.htm

How to make a "bad debt writeoff" in A/R

  1. You must have an account in your G/L to hold such bad debt writeoffs. Typically this is an asset account of some type. After creating this account, be sure to go to A/R configuration and "update A/R from G/L" so that your A/R system knows about the account.
  2. Start A/R, then go to the KEY CHITS module.
  3. Select PAYMENT MODE. This is because you are essentially making a "payment" on the member account from one of your internal accounts.
  4. For the department number to key, use the bad debt writeoffs department. You're making the "payment" to the member account from your bad debt writeoff department.
  5. Type the rest of the information as normal, including the member number and the amount of the writeoff.
  6. Process the month as you would normally.

NOTES: This is not an ADJMENT or CREDIT transaction. It's a "payment" transaction.

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