Enter Bad Debt Levels

Explanation

This activity is used to define bad debt levels. Bad debt levels are used to categorize bad debts based on the possibility to recover them in the long run. Bad debt levels are assigned to ledger items with Bad Debt ledger status in the Bad Debt Management window.

Prerequisites

No prerequisites are necessary.

System Effects

A new bad debt level is created.

Window

Bad Debt Levels

Related Window Descriptions

Bad Debt Levels

Procedure

1. Open the Payment/Payment Basic Data/Bad Debt Levels window.
2. To define a new bad debt level, create a new record and enter the identity and description.
3. Enter the percentage that should be used to calculate the bad debt provision in the Provision Percent field.
4. Specify whether the bad debt provision should be calculated based on open gross amount or open net amount of the invoice by selecting the appropriate value for the Provision Base field.
5. Select the Default check box to use the relevant bad debt level as the default level when transferring invoices as bad debt. Only one bad debt level can be specified as the Default bad debt level and one default level must always exist. The bad debt level for which the Default check box is selected cannot be removed.
6. If the Blocked for Use check box is selected, it will not be possible to use that bad debt level thereafter. However, any invoices to which the level has been assigned is not affected.
7. Save the changes.