Write-Off Bad Debt Guide

Transcription

1 Write-Off Bad Debt Guide Logics LLC 1001 Navaho Drive, Suite 204 Raleigh, NC Phone: Fax: Support: Sales: Software Solutions for Local County Governments, Utilities and Authorities Version

2 How to Create a Write-Off Bad Debt Adjustment Batch BEFORE YOU BEGIN: Verify that your system is setup to utilize the Write-Off Debt feature. Additional write-off adjustment codes for every item that could be written off of an account would need to be in place along with the corresponding General Ledger account information. 1. Click Adjustments Tab 2. Click Batches 3. Place mouse on Tools 4. Click Create Batch

3 5. The Create Batch dialog box will appear. 6. Click Write-Off as the Adjustment Type. The Write-Off options will appear. 7. Select the appropriate Write-Off Adjustment Reason Code. 8. Select the appropriate Cycle Group 9. Enter Beginning Cut Off Date this is the date the account was turned off. For example, if this is a monthly process, then you would let the beginning date be the date after the last time you did write-offs. If you have never done write-offs, then you may want your beginning date to go farther back. 10. Enter Ending Cut Off Date this is the last date you want to appear in the batch. Again, if you do this monthly then it will be the last day of the month and if you have never done this before, it could be the current day. It can also be whichever the last cutoff date you want to appear in the batch. 11. Enter Min. Balance Due this is the minimum balance on a customer s account you want to write-off. For example, you may only want to write-off accounts with a balance no less than $ Enter Max. Balance Due this is the maximum balance on a customer s account you want to write-off. For example, you may only want to write-off accounts with a balance no greater than $100. Many people enter so that it catches pretty much all of your customers that has a balance greater than the minimum. 13. Enter the Description This is just the description of the batch you are creating.

4 14. Click Finished. 15. The system will create the batch. Click on the write-off batch created. 16. The customers will appear below the batch listing. If customers do not appear, then that means there aren t any customers that meet the criteria you set to create the batch. 17. The Work Flow contains various reports you can run and steps to be completed. a. Edit List just shows you every person in the batch (including voided out transactions) and how much is being written off. b. Write-Off List provides a list of all the customers that are being written off. It includes their balances for each service along with other pertinent information.

5 c. Credit Bureau If you work with a credit bureau agency, then you will want to make sure that you export the file to send to the agency. d. Print G/L Gives you the ability to view and print which GL accounts will be used and how much for each. e. Reconcile when you have completed all of your steps and printed everything you need, you will then reconcile your batch. f. Update this is what posts the adjustment totals to the accounts and change the customer s account status from FB-Debit Bal to FB-Write Off Bal. How to Reverse Written Off Bad Debt If a Customer Pays Off the Bad Debt (Option 1 if there is one GL for the various written off charges). 1. Go to Cash Collections. 2. If you don t already have a batch open, create a CC batch. 3. Click Assistant in the batch. 4. Select Utilities as the Payment Code 5. Select Next 6. Enter the account number. 7. Click Next 8. Enter the payment amount. 9. Select yourself as the cashier. 10. Select the payment method. 11. Enter the Tender amount if it s different from the payment amount. 12. In the Apply To field type in the adjustment code that is used to reverse written off bad debt. 13. Check the Manual Charge checkbox. 14. Click Next 15. Click Receipt 16. After the batch is reconciled, distributed and updated, the system will create a Manual Charge Adjustment batch. Reconcile and update the adjustment batch immediately.

6 Note: This process does not change the customer s status from FB-Write Off to a different status. If the customer s status needs to be in a different final billed status (FB Credit, Debit, or Zero Bal) please contact Customer Support at support@logicssolutions.com or How to Reverse Written Off Bad Debt If a Customer Pays Off the Bad Debt (Option 2 if there are multiple GLs for the various written off charges). - MultiPay 1. Look up the customer in Utility Management and access their history. You will need to locate all of the adjustment charges for the write-offs and the adjustment codes used. Keep this information handy as you will need it in the coming steps. 2. Go to Cash Collections. 3. If you don t already have a batch open, create a CC batch. 4. Click Assistant in the batch. 5. Select Utilities as the Payment Code 6. Select Next 7. Enter the account number. 8. Click Next 9. Enter the payment amount of one of the write off amounts. 10. Select yourself as the cashier. 11. In the Apply To field type in the adjustment code for the first amount entered. 12. Check the Manual Charge checkbox. 13. Select Multi-Pay. 14. The Add Item dialog box will appear. 15. Re-Enter the customer s account number 16. Click Next 17. Enter Payment Amount for the next written off amount 18. Select yourself as the cashier. 19. In the Apply To field type in the adjustment code for the first amount entered. 20. Check the Manual Charge checkbox. 21. Click Next 22. Click Finished 23. Repeat steps until all write-off amounts have been entered. 24. When finished entering amounts, click Cancel 25. Select the Payment Method from the dropdown 26. Enter the Tender amount. 27. Click Next 28. Click Finished

7 29. After the batch is reconciled, distributed and updated, the system will create a Manual Charge Adjustment batch. Reconcile and update the adjustment batch immediately. Note: This process does not change the customer s status from FB-Write Off to a different status. If the customer s status needs to be in a different final billed status (FB Credit, Debit, or Zero Bal) please contact Customer Support at support@logicssolutions.com or