Dear Members
May i know how can i treat following Actions
1. Goods Lost in Transit
2. Abnormal Loss
3. Bad Debts Write-off
Regards
Oracleapps1983
Reg: Treatment of actions in Receivables
-
oracleapps1983
- Posts: 256
- Joined: Thu Aug 07, 2008 3:48 am
- Location: USA
Dear Member,
We can treat Bad Debts Write off as follows in Receivables:
Create AR adjustment against the invoice, reducing the amount due on the invoice to zero, and then select an appropriate Bad Debt Write-off expense account to which you post the amount.
Setup a Bad Debt customer profile with a zero credit limit. Then whenever you must write of customer?s invoices, immediately change his or her profile ?Bad Debt? to prevent further credit sales to that customer.
One way to move the receivables to Doubtful Debt is to close the original invoices with a credit memo and enter a new debit memo for the customer with the doubtful debt receivables account. Manual controls must be put in place to ensure that the credit memo and debit memo are always created in pairs and that the same revenue account is used for both memos.
Regards
Peri
We can treat Bad Debts Write off as follows in Receivables:
Create AR adjustment against the invoice, reducing the amount due on the invoice to zero, and then select an appropriate Bad Debt Write-off expense account to which you post the amount.
Setup a Bad Debt customer profile with a zero credit limit. Then whenever you must write of customer?s invoices, immediately change his or her profile ?Bad Debt? to prevent further credit sales to that customer.
One way to move the receivables to Doubtful Debt is to close the original invoices with a credit memo and enter a new debit memo for the customer with the doubtful debt receivables account. Manual controls must be put in place to ensure that the credit memo and debit memo are always created in pairs and that the same revenue account is used for both memos.
Regards
Peri
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