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.