How to record the Bad Debts in AR

[syedtaju_21]

Dear All,


How we can be able to capture/Record the Provision for Bad Debt / Bad Debts in Receivables module.


Advance Thanks

[haider1781]

Hi,

There are two different things one is provision for bad debts and the other is bad debts.

Provision for Bad Debt: Provision for bad debt is to be handle through GL. You can create provision for bad debts in GL and later on it will be adjusted from AR when bad debts is created.

Bad Debt: You can handle bad debts in AR through receivable activities. You can create receivable activities name as Bad Debts in Adjustment type.

Thanks

Farooq Syed

[syedtaju_21]

Thankq Farooq ,

I am clear about bad debts. And I have a doubt in Provision for Bad Debt.

For Provision for Bad Debt as u said we need to pass manual journal in GL and the same will get adjust with Actual Bad debt when we recognize the same in AR.

We need to reverse the Provision for Bad Debt journal at the time of recording the Bad debts. Or is there any way to automatically do the same.

Advance Thanks