Skip to Content
author's profile photo Former Member
Former Member

Provision for Bad Debts

Hello friends,

Do any one know how to configure provision for Bad and Doubtful Debts, and How Bad Debts are treated.

Points Assured.

Satish

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Nov 26, 2007 at 10:28 AM

    Hi

    Step 1:OB04 :You can define here the % of provision.

    Step 2:FS00 :Creation of GL Accounts

    BAD DEBTS,PROV FOR BAD DEBTS-NORMAL ACCOUNTS(EXP&LIAB)

    BAD DEBT RECON Account AND RESERVE FOR BAD DEBT RECON ACCOUNTS (Both CUST Recon G067)

    Step 3:FD01Create customer

    Step 4:F-22 Post INVOICES.

    Step 5:OBXD BAD DEBT TO PROV FOR BAD DEBT

    Step 6:OBXY SDRS TO BAD DEBT RECON

    Step 7:F103 DRS TO RECON

    Step 8:F104 BD TO PROV BAD DEBT

    Step 9:F-28 BANK TO CUST (E -indicator)(RESIDUAL OR PARTIAL PAYMENT IN EACH INVOICE)

    assign points if useful

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Nov 26, 2007 at 10:33 AM

    Hi,

    These both are maintained or entered manually. There is no customisation. You need to create three GL accounts. One in Balance sheet as "Provision for Bad Debts" and other two in P&L.

    1st one will be bad debt account, wherein you need to actual post the value which is non-recoverable.

    2nd will be the contra for the balance sheet account.

    At the end of the month/ quarter etc., the company while creating the reserve, should pass the following entry:

    Dr. A/c 2 (P&L)

    Cr. Balance sheet A/c

    Before creating the fresh, the earlier entry should be revered.

    When actual bad debt happens, then after managment approval, please pass the following entry:

    Dr A/c 1 (P&L)

    Cr. Customer (Clearing the open line item)

    Hope this helps, if yes, please assign points.

    Regards,

    Harish

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Feb 07, 2012 at 04:56 AM

    Hi Gurus,

    i am following the same steps given in the link sap fi Bad debts and provision for bad bebts

    while i am clearing the payment through f-28,the provision amount is nt updated in the open item .

    if u please clarify hw many g/l account i hv to create for provisions, whether they are p/l or balance sheet item??

    Step 2 is nt clear to me??

    thnx in advance...

    Plz clarify.....answer will be rewarded.

    Regards,

    Arindam

    Edited by: Arindam Bhuin on Feb 7, 2012 6:17 AM

    Edited by: Arindam Bhuin on Feb 7, 2012 6:18 AM

    Edited by: Arindam Bhuin on Feb 7, 2012 6:19 AM

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.