Executing a Small Balance Write Off in Microsoft Dynamics AX
Posted on: April 23, 2015 | By: Jarrod Kraemer | Microsoft Dynamics AX/365
A standard process in a company’s Accounts Receivable Department is collections. The collection department will do its best to collect the amount due for any customers who are delaying payment. Each company has different standards and procedures, but there comes a point in time where a business decides that the effort collecting the balance is not worth the price of collecting it. These balances can be characterized as Small Balances and can be collected using the following procedure:
Small Balance Write Off
Go to Accounts Receivable>Journals>Payments>Payment journal
Create a new journal.
Go to payment proposal>Create payment proposal
Go to Select and set your parameters for the write off. Fill in the default offset account for the write off account. Select OK when done.
Transfer payments to a journal. Notice that offset account is to a Ledger. Post to remove invoice from Customer and offset to allowance account.
This process should be able to handle all of your remaining small balances.
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All the best!
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