Thursday, May 19, 2016

AR Write-off process and settings

Customer invoice write-off journal can be created directly from the general journal (in General Ledger module). This journal, if manually created will have debit entry to ‘Customer’ (so that the entry passes through the sub-ledger / memorandum ledger) and the credit entry to ledger code which is created for write-offs.

There is one more standard out of the box way to create the write-off journal in AX. For this the user should navigate to the collections module and select the particular invoice which he/she needs to write-off. Click on the write-off button and then click 'Ok' on the next screen that appears.




After the processing a message window appears informing the user that the (write-off) General journal (with the number)  is created and is ready to be posted.



  
This journal also has the customer (personal account) on the debit side (in-effect affecting the control / summary account .i.e. Account receivables) and the ledger code for write-off on the credit side. This means that the ledger and sales sub-ledger are both updated at the same time. The selection of customer on the debit side is obvious as the write-off button was clicked from the invoice belonging to that customer. But where from the credit side of the journal .i.e. the write-off ledger code is selected??

This is selected from the setup done at the ‘Customer posting profile’ form.




The debit side account associated with the customer also comes from the customer posting profile.




The general journal can then be posted or submitted for approval if the workflow for general journal approval is created and activated for it.

Once the journal is posted, following are accounts that are affected.




Thanks
Sarang

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