Enter Write-off Codes

Explanation

Use this activity to enter, change, and view write-off codes used during customer cash applications write-offs. This optional task is to be performed by a system administrator or equivalent person.

Different codes can be used for different write-off reasons. For example, a code can be used to indicate a bad debt expense or damaged goods. Different write-off codes can be linked to separate cost accounts for follow-up and linked to a write-off notice template. 

When a new company is created, the write-off code for the tolerance code is automatically created. This code is used for automatic creation of write-offs within the tolerance level stated for each customer. For write-offs larger than the tolerance level, a manually created write-off must be entered.

Prerequisites

This activity has the following prerequisites:

• The company must be entered.

System Effects

As a result of this activity:

• Amounts can automatically be booked on different cost accounts in accordance with the entered write-off code.
• Different write-off codes can be linked to separate cost accounts for follow-up.
• Manual write-offs can be entered in the Transaction tab of the Customer Payment and  Mixed Payment windows and by right-clicking and clicking Match Payment.
• PP17 must be set up in the Posting Control window in IFS/Accounting Rules and can be controlled by Control Type PC4 (Write Off Codes).
• A Write-Off Notice Template must exist if generating a write-off notice for the actual write-off code.

Window

Write-off Codes

Related Window Descriptions

Write-off Codes

Procedure

To perform this activity, follow these steps:

1. Open the Write-off Codes window.
2. Create a new record.
3. In the Write-off Code field, enter a value.
4. Enter a description.
5. To use the code as the write-off code for automatically generated write-offs of customer payments, select the Tolerance Code check box. Only one code can be the tolerance code. 
6. To automatically generate a write-off notice for customer payments, select the Generate Write-off Notice check box.
7. To specify the template used for the write-off code, select the template number from the List of Values.
8. To reduce the tax when the write off code is used, select the Tax Reduction check box.
9. Select the Write-off Taxable check box if the write-offs made using the write-off code should be taxable.
10. Save the changes.

Note: It is not possible to select both the Tax Reduction check box and the Write-off Taxable check box for a write-off code.