Configure write off journal for customers error

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Posted on by johnnystruck

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Hello,

I am given the following error upon selecting write off in AR Open Customer invoices: "Default write-off account must be specified before the transaction can be written-off."

I used the following MS Docs information to setup Write Off:

Create voucher series (number sequence) for write off (Org admin > number sequences > number sequences)
Create Journal names for write off (GL > Journal setup > Journal names)
Enable write-off functionality in AR Parameters (AR >Setup > AR parameters > Collections tab >Write off)
Create default Customer Posting profile for Write offs (AR > Setup > Customer posting profiles

Note: the MS documentation is not detailed for Customer Posting Profiles: "Go to Credit and collections > Setup > Customer posting profiles. The write-off account will be used as the expense account or reserve adjustment in the general journal." Is this the root cause of my error? Am I setting up Posting profile incorrectly?

Best,

Johnny

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Satish Panwar 14,671 Moderator on at

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Hi Johnny,

Go to AR parameters > collections tab and setup write-off GL code/ GL account with it.

click on 'Edit' next to GL account next to default write-off reason code. select your company and setup a default GL account to be used with write-off.

This is a global setup, however you can have a write-off reason code also assigned to a specific customer account if needed.

This should help resolve your issue.

Thanks,
Satish Panwar
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johnnystruck 287 on at

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Thank you Satish,

It appears I skipped the prerequisite step of selecting the Default reason code - which allows you to select the Default GL account.

Thank you for your help,

Johnny

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