The following scenario illustrates the creation of a Write Off transaction due to a receivable being considered as uncollectible.
This example shows how to use the Allowance for Bad Debt accounting model (write off to a balance sheet account) and utilizes the aging setup on SOPT to determine write off eligibility. Perform these steps:
The Select for Write Off job is executed in order to select eligible RE transactions that can potentially be written off. Refer to the CGI Advantage - Accounts Receivable Run Sheets Guide for information about the Select for Write Off job.
This job does not write off any accounts but simply loads to the Pending Write Off table.
This job can be executed as needed and certainly on a yearly basis.
Access the Pending Write off table to verify that the RE transaction got loaded.
On the table, the record got loaded with the Write off Status of “N/A Blank” as specified by System Options.
This status ensures that while the RE is identified as eligible for Write Off, it will not be selected for automatic generation of a Write off transaction until an AR user reviews / confirms that the record should be eligible and then changes the Write off status.
The RE Vendor Line is also updated with the Write Off Status set to Requested.
Once the respective entities have approved the WO transaction to be processed, access the Pending Write Off table, change the Write Off Status to Approved for Write-Off, and save the record.
The Generate Write off chain is executed in order to create and submit WO transactions that have been approved.
The WO transaction would be created and loaded on the Transaction Catalog. The Transaction Status parameter can be used to control whether the generated transaction can be submitted immediately.
Related Topic(s):
For general information about editing or creating transactions, refer to the Transactions User Guide.