Transaction Classification 955: Bad Debt Write-Off

This transaction classification should be used when you can no longer collect a past due balance from an account.  This transaction(s) will bring the account to a zero ($0.00) balance and reverse all unpaid invoices and associated taxes. 

When entering a Transaction on the Transaction Posting Page, after you select this classification:

• The Amount field is set to the Account Balance.  This field cannot be changed.
• The system will process all invoices starting with the most recent
• Saving will create one transaction record for each invoice (up to the amount entered/the account balance)
• When the transaction is posted, the system will pull billed tax records from:
  • V1 BillingHistory and save them in TBS.BillingProductBSTaxCredits
  • V2 BillingHistory and save them in BillingRPT_TaxReportCredits
  • A System FlexQL Report (WriteOffFixReport) is executed that allows you to update the customer record as desired.  For example, you could set the Customer Status to “Write-Off”, move the customer to different Billing Cycle or Group, etc.  Please contact Precision with assistance in setting up your company’s business rules.
• The next set of tax reports produced for various taxing agencies will include credits for these taxes. See Tax Reporting for more information.