AR - Write off Invoice

[Former Member]

I used F-30, posting key 17 to write off the amount on the invoice but when I go to FBL5N to see customer balance, it still shows as an outstanding balance. It should clear off the invoice but not doing so. How to write off the amount, so that customer balance gets to zero.

[former_member319435]

Hi Sean,

You can clear the Customer open item through t-code F-30 by following the below steps.

1. Execute F-30

2. Enter Date, Company Code, etc.

3. Select Transfer Posting with Clearing

4. Enter Posting key 40 and the Expenses(P&L) or Doubtful debts (B/S A/c)

5. Enter Amount and Process Open Items

6. Enter Customer Account No and click on Process Open Items

7. Select the desired Amount from the list and Simulate. You should get an entry as below

40    Exp/B/S A/c Dr.

17    Customer     Cr.

8. Save it and you'll not find the above item in open items in Customer ledger

Thanks & Regards

Ramesh

[suma_mani]

Hi Sean,

You have to make Journal voucher with Credit to Customer and Debit either to Bad debts P&L or Doubtful debts Balance sheet.

Regards

Mani Kumar

[Former Member]

Hi Sean,

You need to write the debt off to the GL.

You either use a doubtful debt GL account (balance sheet) or an actual P&L Account if the customer wont ever pay.

You cannot write off JUST in AR - you need to update the GL as well.