Handling of customer bankruptcy

Hi Soren,

Bad Debt Management is an option to handle the open items and post specific valuation allowances for each invoice.  You can setup Bad Debt Levels and Repost the items to a separate bad debt account.The defined percentage will be posted against a p&l account to reflect the lowered value of the item. The open item still remains with its full amount.

Note that tax is not corrected in this process. But if you write off the full invoice later the bad debt posting will automatically be reversed. If you just receive a partial payment the bad debt provision needs to be corrected manually.

What is missing from your perspective to support the process?

Excluding them from the dunning you can

1. change the Reminder Template to 0 our a newly created for bad debts (which will not create reminders and use RMB Function to change it in every open item OR

   

    

2. edit each invoice manually by changing the Reminder Template on invoice level or set Reminder block date
    

   

   
   I would recommend Solution 1

To avoid the addition of new customer orders you can invalidate the adresses and set an expire date on the misc order tab.

I am not aware of a functionality that excludes customers from the aging. But you can exclude them in you reports if you use bad debt functionality. Customers with bad debt items are marked in the customer credit analysis.

Regards

Ralph