Before you can amortize unrecoverable debt, you must create the register journal for the period during which the amortization is run, and calculate and approve the Accounts receivable – reservesand the Accounts receivable – inventoryregisters. The Accounts receivable – transactionand Accounts receivable – reserve transactionregisters do not need to be approved.
After the amortization records are updated, the total amount of the transactions equals the minimum of the marked lines total of unrecoverable debt and reserve amount of doubtful debt.
If the unrecoverable debt total exceeds the amount of the reserve, transactions are created to amortize debt in the unrealized expense and revenue accounts to cover the remaining amount. The created transactions are automatically settled with the unrecoverable accounts and issued advance payments, and therefore, unrecoverable accounts receivable is settled. The voucher amortization date is the same as the date that is specified in the Calculation datefield.
Click Accounts receivable> Periodic> Amortization> Accounts receivable amortization.
In the Calculation datefield, enter the transaction date. You can view the unrecoverable debt details.
Select the Markcheck box to select the entries to be amortized. You can view the total for the marked lines in the Totalfield under the Markedfield group.
Transactions are created in the ledger per customer and numbered in accordance with the sequence that is designated for amortizing unrecoverable debt.
Click Updateto update the total amount for the records selected for amortization. You can view the total that is written off from the reserve or in excess of the reserve in the From reserve for account receivableand To revenues/expenses accountfields.
To view the original transactions, click Transactionunder Customersto open the Customer transactionsform.
Press CTRL+S or close the form.