Write-Off Tolerances
The system uses the write-off tolerances that you defined for the customer, business unit, and entry reason assigned to the write-off item to determine whether the item is eligible to be written off automatically or on the maintenance worksheet. The system also uses the write-off tolerances for the user using the worksheet to determine whether items on a worksheet can be written off. The system uses the most restrictive write-off tolerance values. For example, if the maximum write-off amount is 100.00 for a business unit, 20.00 for a customer, 50.00 for a deduction reason, and 30.00 for the user, the maintenance worksheet uses the 20.00 maximum write-off requirement for the customer because it is the most restrictive.
Note:
If you enable a user to override write-off tolerances on the maintenance worksheet, the write-off must still meet the write-off tolerances for the user.
The tolerances determine the maximum amount that the system can write off and the minimum age of an item before the system can write it off. To determine whether to write off an item, the system checks:
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Whether the write-off amount is less than or equal to the tolerance amount over the life of the item.
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Whether the write-off amount of the item is less than or equal to the tolerance percentage of the open amount of the item on the maintenance worksheet over the life of the item.
The Automatic Maintenance process compares the tolerance percentage to the percentage that the remaining balance for a match group is of the total amount of the debit or credits (whichever is higher).
Note:
If you select No Match Write-Off for a step in an automatic maintenance method, the Automatic Maintenance process does not check the percentage tolerance because the percentage will always be 100.
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Whether the number of days that the item has been open exceeds the specified tolerance days until write-off.
The system determines the number of days that the item has been open by subtracting the item's accounting date from the system date.