Question

Closure of open position after bad debt?

  • 18 April 2024
  • 2 replies
  • 23 views
FGodehardt
Rank
Badge +2

Dear IFS-Community,

I got a 100% bad debt and declared it as well with the bad debt management.

As you can see the bad debt is existing and IFS also says that there´s a “adjustment of value”

I checked the posting control too and it works fine. 

My problem is, that I still have an open position / open item on the customer analysis:

The 952€ are still an open item and are included in the customer´s balance

And furthermore the bad debt value is included in the balance to pay from the customer and also it´s present in my reportings.

Is there any function I forgot to use so that the open position disappears correctly?

Thank you very much in advance.

Best regards,

Frederic

2 replies

Ieva Rituma
Rank
Userlevel 6
Badge +16

Once it is known that the invoice will not be paid and it’s 100% bad debt, it should be written-off to remove it from open items. 

 

You can do this through mixed payment with a 0 value payment line, matching it with the invoice and adding the full invoice value in the Write-off column.

 

  • This requires the user performing the action to have a write-off limit allowed that is larger than the invoice value (to set this up, go toWrite-Off Codes window and RMB to User Limits per Write-Off codes)
  • Additionally, this is also usually done using a special write-off code which is used as the control type in posting control to send it to the correct account. The write-off code used will drive the tax treatment of the invoice also (whether the tax element is also written-off or not is driven by the setting “Write Off  Taxable” setting against the writewrite-off). 
IRituma
FGodehardt
Rank
Badge +2

@Ieva Rituma thank you for your fast and detailled answer!

 

Is it necessary to set an account for this mixed payment process? And if yes, which one should I choose?

Thanks in advance for your help! :-)

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