Change Bad Debt Level

Explanation

This activity is used to change the bad debt level of the invoice from the current level to another predefined bad debt level.

Prerequisites

• The bad debt Level(s) must previously have been defined in the Bad Debt Levels window.
• The invoice must have Ledger Status Bad Debt.
• No other payment transaction with later voucher dates should exist for the relevant invoice (this does not apply to rolled back transactions).
• The payment type Bad Debt Level Change must previously have been defined in the Payment Types window. 

System Effects

The Bad Debt Level of the invoice changes from the previous level to the new bad debt level. If the posting type PP15 - Bad Debt Transfer is controlled by control type  PC3 - Bad Debt Level, the ledger posting will also change for the invoice. If a provision percent is defined for the selected new bad debt level, bad debt provision will be calculated and posting types PP73 & PP74. Any posted bad debt provision from the previous level will be dissolved.

Window

Bad Debt Management   

Related Window Descriptions

Bad Debt Management

Procedure

1. In the Bad Debt Management window, select the invoice for which you want to change the bad debt level, right-click and then click Change Bad Debt Level.
2. The values in the current bad debt level and Current Provision Percent fields appear by default.
3. Specify the new bad debt level in the New Bad Debt Level field. You can also use the List of Values to select a new bad debt level. Once the new bad debt level is selected, the new provision percent is automatically populated with corresponding provision percent which had been defined for the relevant bad debt level.
4. You may select either cost or revenue in the Dissolve Bad Debt Provision To: field. If revenue is selected, the bad debt provision will be dissolved against a revenue account. If cost is selected, and reverse is selected as the Cancel/Rollback Posting Method in the Company/Payment tab, then the bad debt provision will be dissolved against a revenue account (PP75). If Correction is selected as the Cancel/Rollback Posting Method, then the bad debt provision will be eliminated with negative amounts, i.e. correction postings.
5. The system date (today's date) appears by default in the Voucher Date field but the values in this field are editable. The Accounting Period field is automatically populated according to the date in the Voucher Date field.
6. Current user's default user group is presented in the User Group field. However, you can use the List of Values to specify a different user group which has been predefined for the current user.
7. In the Voucher Type field, current user's default voucher type from Function Group B appears by default, but you may use the List of Values to specify a different voucher type.
8. If you want to copy the code parts (Code B to J) from the customer invoice, select the Copy Code Parts check box.