Write-Offs—Key Exercises

IMPORTANT
It is extremely important that you set up and work within your own company and with your own customer to maintain your data integrity. If you work with any other objects, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data must be isolated in your own company.

Basic Data Setup


Customer

Purpose: The purpose of this exercise is to show you how to set up the basic data required for running this particular functionality.

Windows:
Customer

  1. Open the Customer window, and query for your customer.
  2. Click the Payment tab.
  3. Enter a payment tolerance of 3%.
  4. Save your changes.

Required Data


Create Customer Invoice

Purpose: The purpose of this exercise is to show you how to enter the data required for the exercises below.

  1. Enter and post two invoices.

General exercise for Manual Customer Invoices

Main Exercise


Write-Off Notice Template

Purpose: The purpose of this exercise is to create a new write-off template. These templates are used to notify the customers that all or part of the balance has been written off.

Windows:
Write-off Notice Templates

  1. Open the Write-off Notice Templates window, and create a new record.
  2. Enter the information from the table below.
Template ID Template Description Header Main Text Footer
WTL Write-Off due to late delivery Header Text Main Text Footer Text
  1. Save your changes.


Write-Off Codes

Create a Write-Off Code

Purpose: The purpose of this exercise is to create a new write-off code and to connect a write-off notice to this code.

Windows:
Write-Off Codes

  1. Open the Write-off Codes window.
  2. Populate the window (F2). You can now see system-generated write-off codes. Code * (asterisk) is used for automatic write-offs within the tolerance level for each customer.
  3. Create a new record, and enter the information from the table below.
Write-Off Code Description Generate Write-Off Notice Write-Off Template
DEL Late Delivery Checked WTL
  1. Save your changes.

Note: To be able to create write-off notices, the Generate Write-Off Notice check box must be selected.

  1. Select the line with the new write-off code, right-click, and the click Write-Off Limit per User.
  2. If your user ID is among those listed, enter 50,000 as the write-off limit, and save your changes. If your user ID is not among the listed, create a new record, enter your user ID, enter 50,000 as the write-off limit, and save your changes.


Posting Control for Write-Off Codes

Purpose: The purpose of this exercise is to set up the posting control for the write-off code created.

Windows:
Posting control

  1. Open the Posting control window.
  2. Query (F3) for Posting Type PP17. 
  3. Make sure your entry contains the information below. If it does not, change it.
Posting Type Code Part Description Code Part Name Control Type Control Type Description
PP17 Write-Off, Customer Claims Account PC4 Write-Off Code
  1. Select the line with Posting Type PP17, right-click, and then click Details.
  2. Enter new lines containing the information below.
Write-Off Code Control Type Description Account Code Part Description Valid From Valid To
DEL Late Delivery 7940 Write-Off, Customer Claims 1999-01-01 2099-12-31
  1. Save (F12) the detail window.

Note: Make sure that you add the posting control each time you add a new write-off code.


Customer Payment with Write-Off

Customer Payment with Manual Write-Off

Purpose: The purpose of this exercise is to show you how to enter a customer payment that includes a manual write-off. The customer payment will be entered in the Mixed Payment window.

Windows:
Mixed Payment

  1. Open the Mixed Payment window, and create a new record.
  2. Select the cash account where the cash was received.
  3. Select a balance method.
  4. Click the Transactions tab, and create a new record. This tab has many columns that are used for different transaction types, but only a few are used for entering a customer payment.
  5. Enter the information from the table below.
Transaction Type Customer/Supplier Amount
Enter Customer Payment Enter the ID of your customer. Enter the amount of the payment. The amount should be less than the amount of one of the previously entered invoices/installments and outside the payment tolerance, i.e., less than 97% of the invoice/installment amount.
  1. Save the record (F12).
  2. Select the transaction line, right-click, and then click Match Payment. Two windows appear: the Matching window and then the Select Batch of Invoices window.
  3. In the Select Batch of Invoices window, select one of your invoices/installments, and click OK. The invoice/installment is copied to the Matching window.
  4. Change the value in the Amount in Paym Currency field on the invoice/installment line to the paid amount. The remaining amount of the invoice/installment is now displayed in the Remaining Amount field.
  5. In the Write-Off Code field, enter the write-off code DEL, and press Tab. The remaining amount of the invoice/installment appears as the write-off amount.

Note: By highlighting the invoice/installment line in the Matching window and clicking Withdrawals, you can see all withdrawals that will reduce the necessary payment amount for this invoice/installment, discount, write-off, and  deductions.

  1. Click OK to close the Matching window.
  2. In the header portion of the Mixed Payment window, right-click and then click Approve. A window appears with payment voucher information.
  3. Click OK. A window appears in which you can see the created payment and the created voucher number.
  4. Click OK to close the window.


Customer Payment with Tolerance Write-Off

Purpose: The purpose of this exercise is to show you how to enter a customer payment that includes a tolerance write-off. 

Windows:
Mixed Payment

  1. Open the Mixed Payment window, and create a new record.
  2. Select the cash account where the cash was received.
  3. Select a balance method.
  4. Click the Transactions tab, and create a new record. This tab has many columns that are used for different transaction types, but only a few are used for entering a customer payment.
  5. Enter the following information from the table below.
Transaction Type Customer/Supplier Amount
Enter Customer Payment Enter the ID of your customer. Enter the amount of the payment. The amount should be less than the amount of one of the previously entered invoices/installments but within the 3% tolerance.
  1. Save the record (F12).
  2. Select the transaction line, right-click, and then click Match Payment. Two windows appear: the Matching window and then the Select Batch of Invoices window.
  3. In the Select Batch of Invoices window, select one of your invoices/installments, and click OK. The invoice/installment is copied to the Matching window.
  4. Change the value in the Amount in Paym Currency field on the invoice/installment line to the paid amount. The remaining amount of the invoice/installment should still be zero, but the tolerance write-off code (*) should now automatically appear, along with a write-off amount.

Note: By highlighting the invoice/installment line in the Matching window and clicking Withdrawals, you can see all withdrawals that will reduce the necessary payment amount for this invoice/installment, discount, write-off, and deductions.

  1. Click OK to close the Matching window.
  2. In the header portion of the Mixed Payment window, right-click and then click Approve. A window appears with payment voucher information.
  3. Click OK. A window appears showing the payment and the voucher number that were created.
  4. Click OK to close the window.


Write-Off Notices

View Write-Off Notice Items

Purpose: The purpose of this exercise is to show you how to view information about write-off items that were generated to be printed on write-off notices.

Windows:
Write-off Notice Items

  1. Open the Write-off Notice Items window.
  2. Populate the window (F2). Here you can see information about the write-off that you made in the previous exercise. The status is Not Selected.


Create Write-Off Notice Proposal

Purpose: The purpose of this exercise is to show you how to create a write-off notice proposal. 

Windows:
Write-Off Notice Proposals

  1. Open the Write-off Notice Proposals  window.
  2. Right-click and then click Create Proposal.
  3. Enter your customer ID in the From Customer and To Customer fields, or select these values from the List of Values.
  4. Click OK to confirm your selection.
  5. A proposal ID appears in the window. Select the line, right-click, and then click Details to view the included write-off items.


Acknowledge Write-Off Proposal and Print Write-Off Notice

Purpose: The purpose of this exercise is to show you how to acknowledge the write-off notice proposal and to print a write-off notice.

Windows:
Write-Off Notice Proposals

  1. Open the Write-off Notice Proposals window.
  2. Populate the window (F2).
  3. Right-click and then click Acknowledge Proposal.
  4. The status changes from Created to Acknowledged.
  5. Right-click and then click Print Write-Off Notice.
  6. Click Preview to view the write-off notice.