The Accounts receivable – bad debts reserveregister is created to calculate the reserve amount. This reserve is used later to settle unrecoverable debt. The register complies with the totals of the Accounts receivable - inventory register and reflects the remaining debt.

The remaining reserve for the previous period is taken in respect of the Accounts receivable - reserve movement register for the previous period (if not available, it is regarded as equal to zero). The difference between the calculated reserve for the current period and the remainder of the previous period is spread across the unrealized revenues or the unrealized expenses account, depending on the signifier.

  1. Click General ledger> Setup> Profit tax> Registers.

  2. Press CTRL+N to create a new line.

  3. In the Register typefield, select Accounts receivable – bad debts reserve.

  4. In the Register codefield, enter an identification code for the register.

  5. In the Register namefield, modify the name of the register, if necessary.

  6. In the Period typefield, select the type of time period for which the register is created.

  7. Click the Hidetab, and move any fields that you want to hide in the register from Available fieldsto Selected fields.

  8. In Selected fields, select the check box for the register fields to be hidden.

  9. Press CTRL+S or close the form.

See Also