cancel
Showing results for 
Search instead for 
Did you mean: 

bad debits procedure

sanjaypetkar
Explorer
0 Kudos
82

Hi FI experts

bad debts configuration procedure where we want to classify the receivables as bad debts. as company policy the committee declares after review of customer receivables certain transactions as bad debts. there is no month limit is set. kindly suggest the solution

regards

Sanjay petkar

Accepted Solutions (0)

Answers (2)

Answers (2)

anjireddy_appireddy
Contributor
0 Kudos

Hi

1) Define Valuation Method (OB04)

SPRO > Financial Accounting > Account Receivable and Account Payable >

Business Transactions > Closing > Valuate > Define Methods

2) 2) Create 4 G/L Accounts (FS00)

u2022 Bad-Debts

u2022 Reserves for Bad Debts

u2022 Alternative Reconciliation Account

u2022 Provision for Bad Debts

3) Define Accounts for Reserves for Bad Debts (Same Path Above) OBXD

SPRO > Financial Accounting > Account Receivable and Account Payable > Business

Transactions > Closing > Valuate > Reserve for Bad Debts > Define Accounts for

Reserves for Bad Debts

4) Define Alternative Reconciliation Account (OBXY)

SPRO > Financial Accounting > Accounts Receivable and Account Payable > Business

Transaction > Postings with alternative Reconciliation Account > Other Special G/L

Transactions > Define Alternative Reconciliation Account for Customer

End-User Steps

1) Sales Invoice Posting (F-22)

Accounting > Financial Accounting > Customers > Documents Entry > Invoice

General

2) Transfer Invoice from Account Receivable to Alternative Reconciliation (F103)

Accounting > Financial Accounting > Customer > Periodic Processing > Closing >

Valuate > Receivables Transfer Posting (Goss)

3)Make Posting to Bad Debts to provision for Bad Debts (F104)

Former Member
0 Kudos

Hi,

define one special g/l indicator for bad debts provison. post the bad debts provison thru this special g/l indicator.

Regards,

Nauma,