1. Click Accounts receivable> Setup> Parameters.

  2. Click the Ledger and sales taxtab, and in the Percent from receiptfield, enter the percentage range for the bad debt reserve.

  3. In the Unrealized losses accountfield, select the ledger account where unrecoverable debt is written off when using up the reserve.

  4. In the Bad debts reservation accountfield, select the ledger account where the bad debt reserve is held.

  5. In the Expense codefield, select an expense code that is associated with the write-off transaction.

  6. Click the Number sequencestab, and in the Number sequence codefield, select a number sequence code for Ledger voucher for debts amortizationand Ledger voucher for reservationto number the ledger documents for amortizing debts and to create a debt reserve.

  7. Press CTRL+S or close the form.

See Also