Bad debt configuration

Dear  Rahul,

Follow the following steps.

1. Create provision for bad & doubtful debts.

2. Get approval from board/manager

3. Transfer to bad debts from provision.

4. Clear the debtors balance.

if you like to have entries, just mail me vinodkumar2001 @ msn.com .

Regards

Vinothkumar.CMA

Hi,

The procedure for Bad debt configuration:-

Define Methods: SPRO / Financial Accounting / Accounts Receivables & Payables / Business transactions / Closing / Valuate / Reserve for bad debts 

- OB04

- Double click define methods

- Select New entries button

Save

Creation of Bad Debts Account: FS00

Co.code: XXXX  

- Select with template button  G/L A/c:XXXXXX    Co.Code : XXXX

Account group: Administration 

- Select P & L Radio button

Short text: Bad debts    Long text: Bad debts  

- Select control tab button     Current currency: INR

- Select only local currency check box     

- Select line item check box,  Sort key:001  Field status variant: G001                                       

- Save

Define Accounts for Reserve & Bad Debts:  

- OBXD

SPRO / Financial Accounting / Accounts Receivables & Payables / Business transactions / Closing / Valuate / Define Accounts for Reserve & Bad debts

Chart of Accounts: XXXX

PROVISION METHOD     DEBIT     CREDIT

       XXX     XXXXXX      XXX        XXX        

Select rules tab button  Accounts are determined based on 

- Select      Debit/Credit    check box 40/50

- Select provision method check box

- Save

Special G/L Account:  

- FBKP

Double click Special G/L

Account Type     Special G/L     Special G/L Indicator 

   D          E          Reserve        Reserve for Bad debts

Double click Reserve 

Chart of Accounts

Account Assignment    

Reconciliation A/c:XXXXXX (SD)    Spl.G/L-XXXXXX               Save

Accounting / Financial Accounting / Accounts Receivable / Periodic processing / Closing / Value / Receivable transfer posting (Gross)   

Customer A/c:XXXXXX          Provision method: XXXX

Special G/L Indicator for Debit Rec: E (Reserve for bad debts)

- Select create batch input session check box    

- Batch input session name: SAPF103 

- Posting Key:09  Posting document: DA 

- F8

From the menu Select -> System -> Batch Input -> Session

- Select batch input session: SAPF103    Select process    

- Select display errors only V 

- Select process button 

- Exit Batch input

Reference: scn.sap.com

Thanks

Sheli