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.
To create a new write-off code, go to Write-off Codes page and create a new record. To use the code as the write-off code for automatically generated write-offs of customer payments, enable Tolerance Code. Only one code can be the tolerance code. Specify the template used for the write-off code from the drop-down list, if required (only when Generate Write-off Notice is enabled). Enable Tax Reduction to reduce the tax when the write off code is used. Enable the Write-off Taxable if the write-offs made using the write-off code should be taxable.
Note: It is not possible to enable both Tax Reduction and Write-off Taxable options for a write-off code.
This activity has the following prerequisites:
As a result of this activity: