G/L Offset Transfer Method

Use the G/L Offset Transfer method to transfer invoices from the Trade Accounts Receivable account to the Bad Debts account. To do this transfer, use the chargeback procedure in the receipts entry program. When you use the chargeback procedure, you close the invoice by opening a new document (document type RB). You can manually change the G/L offset for the new document to the Bad Debts account (416000).

You can use this method to create one new document per invoice or one new document for all the invoices that you want to transfer to the Bad Debts account.

If you create one document for multiple invoices, you can associate bad debts with document type RB. Otherwise, remembering that document type RB might identify other types of chargebacks, in addition to bad debts, is important.

To further identify clients with bad debts, you can specify the credit message D (for bad debts) on the customer master record for the client.

Note: The disadvantage of the G/L Offset Transfer method is that the system does not include the original data relative to that client's invoices on any A/R reports that you print. However, this situation might not be a disadvantage if you are accustomed to tracking this information by using online inquiries.