Re: Provision of Bad debt at individual customer account level

Hello Govind

You could refer to the help document "Reserves for Bad Debt" for more details. Alternatively the following two options can be used based on the Business Scenario.

Loss on Receivable in the Event of Insolvency

You can write off an open item for which no payment has been received and for which you no longer expect an incoming payment:

1. In the customer account monitor, filter for open items.
2. Select the open invoice or invoices.
3. Click Clear Manually.
4. Under Other Discounts/Credits, enter the full amount and select the reason S01 - Insolvency.
5. Click Clear.

Write - Off an Invoice for which you will not receive the payment.

You could create the New Charge/Credit and post it to the appropriate Write-off G/L Account and then manually clear the invoice with this charge/credit.

Thanks

Parveen Kumar