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.
- In the Bad Debt Management page,
select the invoice for which you want to change the bad debt level, command
and then click Change Bad Debt Level.
- Specify the new bad debt level in the New Bad Debt Level field
- 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.
Prerequisites
- The bad debt Level(s) must previously have been defined in the
Bad Debt Levels
page.
- 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 page.
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.