Question

Creating journals issue

  • 12 June 2020
  • 1 reply
  • 232 views
B
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Userlevel 6
Badge +11

Bad Debt cash written off pre implementation of our IFS has been received by the administrators and allocated to the customer account, this now needs to be journal to the bad debt account in the P&L. We are not aware of the process for doing this?

Is there a way to washout open AR to a specified account?

 

Thanks

1 reply

A
Rank
Userlevel 7
Badge +16

I am not sure if I understand your problem.

Two functions exists in IFS which can be usable for you

  1. Write-off code, when used in customer payment, closes AR open item to PnL Account indicated by PP17 posting type.
  2. Using Bad Debt Management (separate window under Manual Customer Payment menu), you can transfer AR open item to doubtful client account and create bad debt provision in parallel (using PnL account indicated by PP73 posting type)..

Normally if bad debts exist in the books during migration to IFS accounting system from old one, we are replicating bad debt process on migration date (creating provision again and adjusting PnL entries by manual voucher). Please note that bad debt is still and AR open item, to remove it from the books write-off function should be used.

Regards, Adam

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