Doubtful debt, consolidated BP

[Former Member]

Hi all,

I view the customer receivable aging report and find some fields.

What is the doubtful debt means?

Is this field impact to journal entry and othe marketing documents?

if this is a kind of input field, where should i input this field ?

i also find another field in this report

What is consolidated BP,

Will it impact to other journal or marketing documents

Thanks in advance

[Former Member · Accepted solution]

Hi,

For Doubtful debt, it Displays the doubtful debt amount if exists. So this is only related to you if you have any amount defined so.

Same as consolidated BP. Only if you defined such BP, you can display them.

If you have neither, do not worry about them. They are unrelated to your business.

Thanks,

Gordon

[Former Member · Accepted solution]

Hi gordon, thanks for your response

I read some documention about doubtful debt.

In wikipedia said that

doubtful debts are  those debts which a business or individual is unlikely to be able to collect. The reasons for potential non payment can include disputes over supply, delivery, and conditions of goods or the appearance of financial stress within a customer's operations.

.

From this article , i conclude that doubtful debt is a kind of debt that can not be paid by customer because of their operation matter. Am i right ?

And Base on this thread below ,i think the setup of doubtful debt will be suitable for US localization. I've already check it in SBODEMO US.

http://forums.sdn.sap.com/thread.jspa?threadID=1369777

.

How about in Australia localization ? I already check in dababase demo AU.

What the impact to journal accounting if we setup the doubtful debt ?

Does anyone has experience in Australia Localization regarding this issue ?

Thanks in advance

BR

KK

[jitin_chawla · Accepted solution]

Hi,

Doubtful Debts : Are those outstanding amounts, future of realisation of which is uncertain, meaning that there is a overdue amount which is not been paid for long and there is no possibility of such amounts to be recovered as well. Then those outstanding amounts are considered to be Doubtful debts.

A provisioning is usually made for such amounts and based on that Interest and Penalty fee is charged as well.

Settings of the Doubtful debt will be available under the Setup > Financials and as per the Localization's Legal Requirement.

Kind Regards,

Jitin

SAP Business One Forum Team

[Former Member · Accepted solution]

Hi,

So you mean that this setup only in special localization ?

What does Localization's Legal Requirement mean ?

thanks in advance