Direct Write-Offs: Implementation Checklist
The following sections provide details you can use to ensure that the system is configured properly for performing direct write-offs, and to understand (and change, if needed) the settings that affect the processing workflow.
Implementation Checklist
We recommend that before you initially perform write-offs, you make sure the needed settings have been specified, and entities have been created, as summarized in the following checklist.
| Form | Criteria to Check |
|---|---|
| Chart of Accounts (GL202500) | You have created a GL account of the Expense type and a corresponding subaccount (if applicable in your system) to record each written-off amount. You can use one expense, income, or contra asset GL account for both types of write-off processes or use separate GL accounts for balance and credit write-offs. For details, see To Add an Account to the Chart of Accounts. |
| Customers (AR303000) | You have verified the existence of the customer accounts for the customers for which you will record credit and balance write-offs. For details, see Customers: Implementation Activity. |
| Reason Codes (CS21100) | You have verified the existence of the BALWOFF and CRWOFF reason codes that will be used for direct write-offs. |
Other Settings That Affect the Workflow
You can affect the workflow of processing write-offs by specifying additional settings as follows:
- To cause the system to assign separate reference numbers to write-offs, you
apply the following settings:
- You create a numbering sequence for write-offs on the Numbering Sequences (CS201010) form.
- You select the created numbering sequence in the Write-Off Numbering Sequence box on the General tab of the Accounts Receivable Preferences (AR101000) form.
- On the Accounts Receivable Preferences form, make sure that the Automatically Post on Release check box is selected in the Posting Settings section. This setting indicates that AR documents will be automatically posted to the general ledger once they are released.
Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you write off balances by performing instructions similar to those described in Direct Write-Offs: To Process a Credit Write-Off and Direct Write-Offs: To Process a Balance Write-Off.