Direct Write-Offs: Implementation Activity

In the following implementation activity, you will learn how to implement the write-off functionality.

Attention: This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that SweetLife Fruits & Jams decided to start using the write-off functionality for its customers. At first, users should be enabled to write off small balances in documents of the ABAKERY and CITRUS customers. The write-off threshold for ABAKERY is $5 and the write-off threshold for CITRUS is $10. The reason codes for credit write-offs and balance write-offs have already been defined in the system.

Acting as the chief accountant of SweetLife, you need to set up the write-off functionality.

Process Overview

In this activity, you will first update the settings of one reason code on the Reason Codes (CS211000) form. On the Customers (AR303000) form, you will allow write-offs for the two customers. Finally, on the Accounts Receivable Preferences (AR101000) form, you will specify the default reason code for one of the write-off types.

System Preparation

Before you start setting up the write-off functionality, launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded. You should sign in as the chief accountant with the johnson username and the 123 password.

Step 1: Updating the Settings of the BALWOFF Reason Code

To update the settings of the reason code used for balance write-offs, do the following:

  1. On the Reason Codes (CS211000) form, open the BALWOFF reason code.
  2. In the Account box, select the 61200 (Small Balance Write-Offs) account.
  3. On the form toolbar, click Save.

Step 2: Allowing Write-Offs for Particular Customers

To allows write-offs for the ABAKERY and CITRUS customers, do the following:

  1. On the Customers (AR303000) form, open the ABAKERY customer.
  2. On the Financial tab (Financial Settings section), specify the following settings:
    • Enable Write-Offs: Selected
    • Write-Off Limit: 5

      The write-off limit that you specify is the default limit that is used on the Write Off Balances and Credits (AR505000) form; it is also the maximum limit that users may write off on the fly by using the Payments and Applications (AR302000) form.

  3. On the form toolbar, click Save.
  4. In the Customer ID box, select the CITRUS customer.
  5. On the Financial tab (Financial Settings section), specify the following settings:
    • Enable Write-Offs: Selected
    • Write-Off Limit: 10
  6. On the form toolbar, click Save.

Step 3: Updating the Accounts Receivable Preferences

To update the accounts receivable preferences, do the following:

  1. Open the Accounts Receivable Preferences (AR101000) form.
  2. On the General tab (Default Write-Off Reason Codes section), in the Credit Write-Off Reason Code box, select CRWOFF.

    The appropriate default reason code is inserted by the system when you select the credit or balance type of write-off process on the Write Off Balances and Credits (AR505000) form or when you select a document to which the payment is applied on the Payments and Applications (AR302000) form. However, you can override the default reason code.

  3. On the form toolbar, click Save.