Processing AR Aged Write-offs/Bad Debt?

Question

I've gone through the trainings and searched the knowledgebase to find out how to write-off old AR invoices that we know we will never receive payment on. Does Sage 100 Contractor have a way to do this? Any info/help would be greatly appreciated!

Char DeLange · Accepted Answer

Hi Jenni 
 In order to write off bad debit, you will manually create one credit invoice in 3-2 invoices to the job (one for each job you are writing off balances for, you do not need to issue a credit for each invoice). 
 Use the description "bad debt write off" use TODAYS date for the invoice date (you should never try and create credits for prior years because the original invoices are old). Down in the grid, use the GL account for "bad debt expense" usually in the overhead range. Then do a cash receipt (menu 3-3) to apply the credit to the old invoices that won't be paid. Verify that the deposit nets to zero. 
 NOTE: The AR invoice type at 3-2 has a distinct function in this case. 
 If you leave it as type 1=contract, then the credit will reduce the billed amount towards the contract, leaving the amount as unbilled. You would then need to issue a change order to reduce the final contract by the write off amount. 
 If you change it to type2=memo, then the credit will not affect the final contract amount. 
 The decision as to what you want the final contract amount to show should be determined by the owner, project manager, or CFO of the company and become a standard "company policy" in determining how write offs are addressed. 
 If this answers your question, please remember to tag your question as answered so that it doesn't continue to be listed as an open case.

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Processing AR Aged Write-offs/Bad Debt?

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