What is the t.code to post bad debt in Accounts Receivables and the journal entry? and how to create provision or reserve for bad and doubtful debts in A/R, ( i think it is a special GL transaction),
what is the journal entry to post provision for bad and doubtful debts?
Thanks and regards,
Provision for Bad Debts (exp) Dr
To Provision for Bad Debts (Liab)
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)
Just do the step by step you can understand.
Step and T.codes:
Step 3: FD01
Step 8: F104
Please refer to the links below to give you some information on the Bad Debts configuration.
The IMG menu for the same would be Financial Accounting->Accounts Receivable and Accounts Payable->Business Transactions->Closing->Valuate->Reserve for Bad Debt.
Hope now clear.
Edited by: kishore babu on Jan 21, 2010 11:10 AM