Write off bad debt customers

Hello
Is there any workflow template for the following:
Credit controller proposes an amount to written of on customer open items.
Depending on amount the authorised person is looked up in an authorisation matrix (table)
This person gets a message in his inbox/mailbox with the request to approve the write off.
After approval the journal posting of the write off is made.

Hi,
If the table is BKPF then the object is BKPF, FIPP or similar. If you look in transaction SWO2 and find object BKPF it is under the area "Financial Accounting". If you then goto PFTC and enter Workflow Template for Task Type and then F4 on Task and select Structure search, goto the area Financial Accounting and you will see all the workflow templates available.
Regards,
Eddie

Similar Messages

  • Project Billing "write-off" options

    I'm attempting to determine the best method of "writing off" transactions on direct projects that have been reported as billable, accrued revenue but will never be billed. Please consider the following narrative as an example:
    A consultant (consultant x) charges April time and expense to project 10001 in a billable capacity (charged transactions to a billable task). The transactions are cost distributed, revenue distributed and an invoice is subsequently produced. All cost and revenue transactions are produced, interfaced and ultimately posted to the general ledger in April. The month of April is closed in PA and the invoices for the April billing cycle are produced. Project 10001's draft invoice includes those charges reported by consultant x and is distributed to the project manager for approval. The project manager reviews the invoice review and determines that consultant x's transactions will never be billed and instructs the accounting group to write off the transactions.
    Challenge: we need a way to "write-off" (reduce revenue and change billing status) transactions that will allow for consistent reporting and measurement. Specifically, we need to be able to determine all write-off's (revenue/billing reductions) in a given period that relate to original transactions from an earlier or different period. In short, we want to establish a policy and procedure for consistently processing and reporting these types of conditions.
    Proposed Options:
    1) use the "special" non-billable adjustment option from either expenditure inquiry or invoice review to change the billing status from billable to non-billable.
    Pros:
    a) transactions will remain on the project in the capacity they were reported by the employee
    b) an adjustment record will be created in the PA_Expend_Item_adj_Activities table which will include the adjustment activity code (i.e. Billable Reclass, Non-billable reclass, billing hold, billing hold release, etc.)
    c) history of who created original transactions and adjustments is available (full audit trail)
    d) a reversing revenue entry will be created in the PA_Cust_Rev_Dist_Lines_all table which will allow us to track the dates (gl period) of the revenue adjustment and compare it to the original transaction dates.
    Cons:
    a) to the average users the transaction on a billable task flagged as non-billable with no corresponding revenue may look unusual because there is no description explaining why the adjustment existed. the only way to determine that revenue existed and was subsequently reversed is to look at item details- revenue details.
    b)The revenue write-off will be charged to the same accounts (revenue and inventory) that the original transaction was booked to but in reverse. we don't have the ability to deflect the "write-off" to a bad debt account versus a direct write-off of revenue.
    c) The employee's utilization calculations will be impacted by changing the billing status of the transactions and reducing the corresponding revenue. we may need to update the utilization report to reflect these types of transactions differently.
    2) use the "special" transfer adjustment option to transfer the transaction from the originating billable task to a non-billable destination task on the project in question.
    Pros:
    a) the average user will easily see that the transaction in question has been reversed and b) the revenue subsequently written off by the negative revenue on the reversal transaction
    c) an adjustment record will be created in the PA_Expend_Item_adj_activities table which will include the applicable adjustment activity code(s) (Transfer Back-out, Transfer Originating, Transfer Destination).
    d) history of who created original and adjustments is available.
    a reversing revenue entry will be made via e) the negative reversal entry created in the PA_Cust_Rev_Dist_Lines_All table.
    Cons:
    a) the original transaction is being altered (transferred) by accounting. the integrity of the transaction as it was submitted by the source employee may be compromised.
    b) there is no easy way for the average end user to know where the transaction was transferred to. the information is available via ad hoc reporting from database tables but looking at expenditure inquiry for a given project you will not be able to determine where the transaction went if it was transferred to another task and many tasks exist or if it was transferred to another project entirely.
    c) The revenue write-off will be charged to the same accounts (revenue and inventory) that the original transaction was booked to but in reverse. we don't have the ability to deflect the "write-off" to a bad debt account versus a direct write-off of revenue.
    d) The employee's utilization calculations will be impacted by changing the billing status of the transactions and reducing the corresponding revenue. we may need to update the utilization report to reflect these types of transactions differently.
    e) As a common practice, each project will need at least one "non-billable" task to capture such write-off transfers.
    3) use a write-off event (both revenue and billing) to reduce the project by the aggregate amount of all transactions in question.
    Pros:
    a) employee specific transactions and ultimately utilization results will not be impacted by the independent event transaction.
    b) by modifying our autoaccounting rules we will be able to book the "write-off" to an account other than a revenue account. (I believe, more research necessary)
    Cons:
    a) No link back to actual transactions.
    b) original transactions will remain untouched and will appear as though they were billed and will show up on the invoice and detail reports to the client along with an aggregated event for the total write-off amount.
    Any thoughts or opinions you can provide about the best practice in Oracle will be greatly appreciated.
    null

    Diana,
    Here's another response from a (very) senior Projects consultant. Her comments are in CAPS, so they can be dinstinguished from your comments:
    "I recommend following the approach she outlines in Section 2, with the following additions:
    SECTION 2) use the "special" transfer adjustment option to transfer the Transaction from the originating billable task to a non-billable Destination task on the project in question. CORRECT.
    A) SET UP THE WBS TO HAVE A TOP LEVEL NON-BILLABLE TASK, ON EVERY PROJECT, WITH A TASK NUMBER OF :"WRITE-OFF".
    B) WRITE AUTOACCOUNTING RULE , BASED ON TASK NUMBER, TO ENSURE THAT ANY TRANSACTIONS CHARGED (TRANSFERRED) TO "WRITE-OFF" TASK WILL BE POSTED TO A "WRITE-OFF/BAD DEBT" ACCT IN GENERAL LEDGER.
    C) CREATE A DFF AT THE EXPENDITURE ITEM LEVEL WHICH CAN BE POPULATED AT THE TIME OF TRANSFER, TO INDICATE WHERE THE TRX IS BEING TRANSFERRED TO. IT IS TRUE THAT TRANSFER ACTIVITY REPORT WILL TELL YOU THIS AS WELL, BUT IF YOU
    WANT TO SEE IT ONLINE DURING EXPEND. INQ, THEN DFF IS FINE.
    D) AS TO CONCERNS ABOUT "THE INTEGRITY" OF THE TRANSACTION AS IT IS SUBMITTED BY THE EMPLOYEE BEING COMPROMISED, THIS IS CERTAINLY POSSIBLE, BUT IF THIS IS A SERIOUS BUSINESS CONCERN, THEN I WOULD CONSIDER CREATING AN ALERT TO THE EMPLOYEE WHO ENTERED THE ORIGINAL TRX, ADVISING THEM OF THE CHANGE AND REQUESTING THEIR REVIEW AND OR APPROVAL OF THE TRANSFERRED TRX. I CAN SEE THIS BECOMING QUITE CUMBERSOME THOUGH, AND, OVERALL, ACCOUNTING DEPARTMENTS MANIPULATE TRANSACTIONS FOR ACCOUNTING PURPOSES ALL THE TIME AS STANDARD PRACTICE, SO I'M NOT SURE WHY THIS IS AN ISSUE HERE.
    E) AND LASTLY, IT IS TRUE THAT AS A COMMON PRACTICE, EACH PROJECT WILL NEED A
    'WRITE-OFF" TASK AS A STANDARD PART OF IT'S WBS-- SO WHAT? IT'S JUST ONE MORE TASK IN YOUR WBS. BUILD IT INTO YOUR PROJECT TEMPLATES, AND MAKE IT NOT CHARGEABLE UNTIL WRITE OFFS BECOME NECESSARY. AS TO UTILIZATION, THERE IS NOT ENOUGH INFO IN THE CLIENT QUESTION TO ADDRESS THAT ISSUE PROPERLY.
    THAT'S ABOUT IT. HOPE THIS HELPS.
    BEST REGARDS, PAT"
    null

  • Tax relief - Bad debt write off

    Hi all,
    For a customer with bad debt, it appears standard practice is to use a journal entry to write the debt off to a "Bad Debt" GL account, and then manually reconcile BP balance to zero.
    However, the VAT(consumption tax) for the written off amount will still be showing as owed to the government, and will still appear in the TAX report.
    In the UK as in other countries, I assume there is relief on bad debt, so the VAT(consumption tax) needs to be written off as well. The only correct way I can think of doing this at the moment is doing a service type credit note with matching tax code of the original invoice specifying the bad debt GL account. In this way, the VAT will also be reversed.
    Can anyone advise what method they use, or if there is a proper methodology to do this?
    Thanks,
    Raj

    Hi Gordon,
    Thanks for the reply. So as an example, am I correct in thinking the below is the "correct way" to do a write off (if we wanted to avoid doing journal entries):
    AR INVOICE - Item Type
    Item A x 1 @GBP100.00
    VAT/TAX @GBP17.50
    -->
    AR CREDIT NOTE - Service Type
    Bad Debt Write Off     xxxxxxxxxx (GL a/c no)    @GBP100.00
    VAT/TAX @GBP17.50 (assuming we specify identical tax code)
    -->
    Internal reconciliation to zero
    Thanks,
    Raj

  • Impact of Sales Write off amounts on Tax liability

    Hi Friends ,
                       Did any of you had tis situation at your client ? I want to know the impact of tax liabilitry on sales write off amounts  , will it reduce the tax liability if sales write off amounts or in other words the bad debts are considered for tax calcualtion. Any inputs greatly accepted,
    thank you ,

    I am trying to post the tax portion to the tax liability account during write-off in IS-U FICA. Is there a way I can post the tax portion on the invoice to the tax liability account instead of posting the entire amount to the expense account? Any help is highly appreciated.

  • Dispute Case - Write-off entry

    Dear Experts,
    When we write off any invoice through UDM_AUTOWRITEOFF in FSCM, system Debits the Bad debts write off (P&L) A/c and Credits the Customer A/c. However, we want system to segregate VAT, Tax and Freight amount from Bad debts write off A/c. So that the entry would be VAT -Dr. Tax-Dr. Freight -Dr. Bad debts -Dr. and Customer -Cr. Please could you through some light on How to achieve this?
    Thank you.
    With Kind Regards,
    Naresh B. Pandya

    HI Naresh,
    To my understanding there is no configuration in FSCM by which you can achieve what you have stated, since we want to achieve something in FI area by doing an acitivity in FSCM, whereas vice-versa would probably work. I can possibly think of a work around. You can post a normal write-off entry giving the tax code therein, which will clear customer open item, and post to tax GL as well. Now, since the open item (document) which was "disputed object" in FSCM - Dispute case, that object will get updated with resolved object as the new document posted. Basically, the dispute case attribute will reflect the changes that has occurred in FI (FI-FSCM integration). However, I'm not sure whether this amount will get updated in field "paid amount" or "written off" amount. You can simulate and check out.
    I am also interested to know how you deal with this, so keep me posted.
    regards,
    TV.

  • Dispute Case write off to CO-PA

    Hi Experts
    I have an requirement, when writing off dispute case, for some reason code we need the write off to go to CO-PA. Could you please suggest how this can be done. I have tried the user exit, FDM_AR_DISP_WRITEOFF, but not sure how to start with. There is a field additional criterion in general ledger account folder where I specify the case type, reason,...... not sure what to fill in this field, this field is related to the badi.
    Can somebody provide me some directions, please.
    Thanks you in advance
    Jen

    Hi,
    So basically you need to information from the invoice right? If so, when you write off your open receivable you can have the system look at the original posting. Retrieve the information from there (and that could be many lines since you retrieve that info from the invoice) and post to the P&L with the relevant COPA information from the invoice and to the correct P&L account for Bad Debt Write off. This then can also be many lines depending on the COPA information on the invoice lines.
    Regards,
    Richard

  • FP04 : Write off and debiting Tax accounts

    Dear All,
    I have an issue with debiting tax account on write off.
    Scenario: Invoice posted $1000 including tax of $100.  i.e $900 consumption (revenue) + $100 tax.
    GL Postings:
    Customer account 1000 Dr
    Revenue Account   900 Cr
    Sales tax                 100 Cr.
    Write off( FP04  any reason codes).
    System posts the Following:
    Customer account 1000 Cr
    Expense Account  1000 Dr
    I need it to be like:
    Customer account 1000 Cr
    Expense Account   900 Dr
    Sales tax                 100 Dr.
    I've tried everything I can, but I think I'm missing something very obvious and silly.
    1) Maintained posting areas:
    0120 : Expense Account (No tax code specified and tried with tax code too)
    0121 : Expense Account for non tax related items (same expense account)
    0122 : Tax Adjustment Flag (Tested with both flag on and off)
    2) Define Act Assignments ReLU to Main Transactions
    Company     Division     Act Deter        Main       Acct
    1000     10          01-10               0090       Expense account
    1000     10          01-10               0095       Expense account
    3) ISU u2013 Define Acct Assignment Relv to Transactions
    Set Main receivable account (Customer account) for all combination  of 0090 and 0095. i.e. 0010 and 0020.
    Company     Division     Act Deter              Main/Sub      Acct
    So what am I doing wrong?
    Thank you very much.
    Edited by: JayUtility on Jan 31, 2012 2:53 PM

    Thank you Ivor. Tried that too.
    I'm still stuck at:
    Customer (AR) Account 1000 Cr
    Expense           Account 1000  Dr
    The entire invoice amount is debiting against the Expense / bad debt account.
    I need that only the consumption portion should debit Expense account and the Tax portion should debit the Tax account.
    Customer account  1000 Cr
    Expense Account    900 Dr
    Sales tax                 100 Dr.
    It seems like an easy enough thing. I must be missing something.

  • Write Off Process

    Can anyone help me telling 'How Write off process with Tcode happens in FICA'. FP04 Tcode using for write off. What are the impact for this in CA, And how it displays in history.

    Hi,
    Please refer to the following documentation in help.sap.com-
    http://help.sap.com/saphelp_utilities472/helpdata/en/14/08723521faee41e10000009b38f889/frameset.htm
    There is no SAP standard process that triggers any change in the standard fields in the contract account level for a write-off.
    However, from accounting point of view the following entries gets posted-
    Bad debt A/c Dr
    To Customer A/c.
    Thanks
    Amlan

  • Write off

    Ability to offset auto write off.
    We need to see if a write-off payment comes back from the patient say after a year.  If customer pays back after write off is done. we want to reverse write off.
    Thanks
    Nik

    Configuration is available only for creating reserve for bad debts, probably this is more a common across the industry. This is done through OB04 and OBXD. There is nothing specific for writebacks. Only thing you may want to ensure it if you set the config for reserve for bad debts, make that GL account also to Supplement auto posting. Whe you receive the money back from the written off customer, the bank statement import would probably post to the customer account 'on account". You can use F-30, 'transfer with clearing' transaction to remove the credit from the customer and credit the provision account.

  • Write offs in AR

    is there any configuration needed to do write offs? what is the transaction used to to write off in SAP FI? If it is f-32, then do we jsut process it because when i doit, i have to ener the debit and credit side 40 and 50 and the respective accoutns for it. do I have to maintain special g/l indicator for this or we can do write offs without special gl indicator?
    is bad debts different from write offs. if yes, how are they different and what is configuraion needed for them?

    you need to use t code F-30.
    You need the radio buttion "transfer posting with clearing"
    You do need to use special G/L indicators.
    You also need to use postnig keys "19" and "09"
    Your special G/L will link to a different recon account, and you therefore move the customer debt from 1 standard recon account, to your doubtful debt GL account.

  • Write off cash discount in lockbox irrespective of the permitted pmnt diff

    Hey,
    We are in to lockboxes, at times we receive payments including discounts..and as such when the lockbox runs, it creates credit memos on customers for the discount amount, what we want is to write off the discount amount ...I know we can do it in OBA3..but that setting allows me to write off discount only to the maximum of the permitted payment difference...  I want to use reason code to write the discount off (as the reason code has a check box through which I can ignore the payemnt diff)....again for this..........we have setting in OBCW.... but I am not able to use it..is there any one who has  succesfully used OBCW--> "reason code for clearing payment according to payment advice"..
    Thanks

    any replies/suggestions

  • Dispute Case - Write off multiple cost centers

    Hi Experts,
    I have a different requirement on automatic writing off of dispute cases. There is one collection specialist who handles multiple location customers. Each location/branch is created as profit center and in each location/branch there are many customers. So if there is a dispute case which needs to be written off for Customer A in Location A, the cost center needs to be A which belongs to Location A, similarly for other locations too, where ever the customers belongs to it needs to written off to that partcular location cost center.
    In settings of automatic write

    sorry experts, fat fingure, accidentally pressed the enter key, here is the continuation of the message.
    In customizing for automatic write off, i dont have the option except by person responsible and cost center. Location/branch is also equal to sales office which is assigned to the customer master.
    Is there a way we can address this requirement, could you guide which direction i need to move.
    Thanks in advance
    Best Regards,
    Jen

  • Events to reverse write off at Incoming Payments

    Hi All,
    I Have a requirement  requirement which is when a incoming payment comes in system should first check whether there is any write off document and if there is then write off document should be reversed and the incoming payment should be assigned to that particular item. Please could anyone suggest me any events
    Thanks,
    Immanuel

    THank you Kamala...Amount is max amount. but do you know what are these figures in for
    TOl group for emploees
    Revenue 5, 2%
    Expense 5, 2%
    Current Configuration for Tolerance Group for Customers/Vendors is
    Permitted Payment DIfference
    Gain 5, 10%
    Loss 5, 10%
    so if my invoice is $100 and i receive payment for 95....i know that the 5 means that 5 is diff allowed but what about the 2 and 10%.

  • Write Off Several Commitment Balances

    The case is that we have lots of deposit invoices of various customers amounting not more than 5 Rupees, and the commitment balance is due to be applied on transactions.
    One way to do this is that I would create lots of transactions for each and every commitment balance which is a very hectic activity. Is there any provision in R12 to write off several commitment balances in one go, like Auto Adjustment.

    Hi
    See Note 1150062 - FS-PP: Customizing settings for Clearing of Trivial Amounts.
    I hope this helps you
    Regards
    Eduardo

  • Post Bad Bebt and Bad Debt Recovery

    Hi,
    I post a customer invoice of 2000. Then I need to post an amount of 1000 as bad debt against the invoice. Subsequently, I recieve the bad debt recovery.
    Kindly advise how to process this in SAP and what entries do I need to post.
    Regards,
    Gangs.

    Hi,
    Thanks for your suggestions.  what will be the entries generated in this process and what transaction codes can I use.
    can I set off the bad debt posting against an invoice?
    Regards,
    Gangs.

Maybe you are looking for