bad debts config

[Former Member]

hi

guys i have one doubt. can any one tell how to post the entry (bad debts), what we will transfer in f103 (t code).

i have the configuration notes on it. but i didnt understand how to do it.

thnx for the reply

ashok

[Former Member]

Hi,

Once you have maintained, the configuration for 'Reserve for Bad Debts', which includes the method of identification of doubtful debts based on the no of days / months for a particular transaction and the rate of provision for doubtful debts; and also includes the account determination, you have to execute the following:

F103- this Tcode identifies the transactions which are doubtful in nature and such transactions are parked in a different recon account maintained.

F104 - this Tcode actually makes an entry for the provision for doubtful debts.

Hope this is clear.

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[Former Member]

hi Swapvik

thanks for the reply. i have adoubt then what will be the accounting entries. so as u said the debts will be calculated as per the percentage specified rite.

is that the generall invoice we need to post for the bad debts.

thanks for the replys

ashok

[Former Member]

plzz any body with some more clarification for me.

[Former Member]

Hi,

Suppose Sundry drs recon 21000000, bad debts recon account 21100000, Provision for Bad debts (exp)(posting key 40) Provision for Bad debts (liab)(posting key 50)

then the entries are as follows:

Sales:

Customer Dr (Recon 21000000)

To Sales

F103:

Customer Dr (Recon 21100000)

To Customer Cr (Recon 21000000)

F104:

Provision for Bad Debts (exp) Dr

To Provision for Bad Debts (Liab)

Presentation in Financial statements:

Sundry Debtors (considered good) 100 (21000000)

Sundry Debtors (considered doubtful) 10 (21100000)

Total 110

Less: Provision for Bad debts (liab) 10

Net 100

Hope this is clear.

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