Enter Bad Debt Levels
Explanation
This activity is used to define bad debt levels. Bad
debt levels are used to categorize bad debts based on the possibility to recover
them in the long run. Bad debt levels are assigned to ledger items with Bad
Debt ledger status in the Bad Debt Management window.
Prerequisites
No prerequisites are necessary.
System Effects
A new bad debt level is created.
Window
Bad Debt
Levels
Related Window Descriptions
Bad Debt Levels
Procedure
- Open the Payment/Payment Basic Data/Bad Debt
Levels window.
- To define a new bad debt level, create a new
record and enter the identity and description.
- Enter the percentage that should be used to
calculate the bad debt provision in the Provision Percent field.
- Specify whether the bad debt provision should be
calculated based on open gross amount or open net amount of the invoice by
selecting the appropriate value for the Provision Base field.
- Select the Default check box
to use the
relevant bad debt level as the default level when transferring invoices as
bad debt. Only one bad debt level can be specified as the Default bad
debt level and one default level must always exist. The bad debt level for which the Default check box
is
selected cannot be removed.
- If the Blocked for Use check box
is
selected, it will not be possible to use that bad debt level thereafter.
However, any invoices to which the level has been assigned is not affected.
- Save the changes.