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To write off A/R for customer accounts either for bad debt or corrections, I currently have been putting in a cash receipt for the full amount I wish to write off and post it through. Once it is posted, I then make a general journal entry to reverse the cash collection and expense bad debt or sales depending on the write off I am making. Is there a simpler way to do this without having to apply cash and then go in after with a journal entry.
The greatest problem I find with doing it this way is that it show's a false amount in the customer's card for how much they have paid and it leaves no trail in the customer card to reflect the bad debt or correction to the invoice
Suggestions?
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I have the same question (0)There are 2 simple ways to write off receivables in Receivables Management. 1) Enter a Credit Memo, or 2) create a payment type for "Write-Off" that is coded to your Write-offs G/L account. I personally prefer the Credit Memo for 2 reasons. 1) It gives better documentation than a simple payment, and 2) I don't like giving my AR or Sales staff the idea that "Write-Off" is an acceptable payment option even if they aren't supposed to use it.
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