Doubtful Debts

How does it Work?

The calculation of doubtful debts is available using the Customer Receivables Aging
report (Reports -> Financials -> Accounting -> Aging -> Customer Receivables Aging).

You can create a journal entry for transferring the amount of the doubtful debt from the customer to a relevant G/L account.

SAP Business One will then open a Journal Entry window with the customer code and
the doubtful debt amount recorded in the first row.

You should complete the journal entry by selecting an appropriate G/L account of Bad Debt for Company Expense in the second row.

How to setup?

You can setup Control Account for doubtful debt transactions.

Defined in (Business Partner Master Data -> Accounting tab page -> General tab page -> Control Accounts icon. Click the icon , to open the following window: