Write Off information for Accounts Receivable within FMS

When an Invoice is created in Accounts Receivable the sum of money is credited to the Ledger Code for that “product” e.g. Lettings which is also linked to the Lettings Income Cost Centre for example. The VAT is credited to the VAT standard rate income Ledger Code and the whole sum is debited to the Debtor Control Ledger Code.

With a write off this is almost reversed, with the Debtor Control Ledger Code being credited and the VAT Ledger Code being debited. However, the sum of money is debited from the Ledger Code that is set up for “Bad Debts”. This is an expenditure Ledger Code that is also linked to the Cost Centre for say Lettings Income.

Within Accounts Receivable you need to specify which Cost Centre, Ledger Code and Fund to use for these write offs. Use route Tools | Accounts Receivable Parameters and you will see the following :-



Reviewed on 12/08/2016

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