ADA Allowance (FINA645 - SIGAFIN)

This routine constitutes the allowance for doubtful accounts (ADA). The purpose of this allowance is to cover probable losses when receiving trade notes. Thus, once the allowance is established, if some company trade notes are not received, they are forcibly written-off to counter the Allowance for Doubtful Accounts. If, at the end of the year, the total losses do not reach the value of the Allowance, the excess is reversed; that is, posted to the ledger as revenue, zeroing the old allowance, so a new Allowance can be created for the following year.

A new routine is created so the user may select customers in this allowance situation, transferring these bills to a collection status in the Financials module, besides posting the operation to the ledger.

Requirements

Have registered:

• Accounts Receivable.
• Standard Entries registered as: 54A - ADA Constitution, 54B - ADA Value Reversal, 54C - ADA value apportioned by outbound invoice items and 54D - ADA value reversal apportioned by outbound invoice items.
• Collection Status registered in ADA with field ADA Status as Yes.

Procedures

1. Click Constitution. The system displays the parameters screen.
2. Fill them out in accordance with help instructions.
3. Field ADA Collection St. must have the ADA Collection Status.
4. Check the data and click OK.
5. After confirmation, the system displays the fields and the customers in accordance with parameters.
6. You can change the Collection Status of the Customer or of only a single bill.
7. Click Confirm.
8. The allowance is saved with status Simulation.

To activate the allowance:

1. Click on the bill and then click Activation.
2. Fill out fields Show Entry? and Group Entry? as desired.
3. Click OK and Confirm
4. The system displays the accounting entries generated.

See Also

• ADA Allowance Report

• Technical Data (FINA645 - SIGAFIN)