Bill-Based Write-off

If you write-off unpaid bills, you must set up the following:

• Set up the adjustment type that will be used to write-off an unpaid financial transaction. This adjustment type must be configured as follows:
  • Adjustment Amount Type must be Calculated Amount
  • Its distribution code is irrelevant as a separate calculation line will be created for each distribution code on the FT's that is written off and these lines will reference the appropriate distribution code.
  • It must reference an adjustment type char type / value that identifies it as one used to write-off a bill's FTs
  • The following algorithms must be defined on the adjustment type:
• The Generate Adjustment system event must reference an algorithm that has the responsibility of determining how to write-off a FT. This algorithm should be determining the FT's GL details and creating a separate adjustment calculation line for each GL detail. The base package is supplied with a sample algorithm that does this (C1-ADJG-WO).
• The Adjustment Financial Transaction system event should reference an algorithm that impacts current, payoff and the GL by the amount being written off.
  • The distribution codes referenced on the financial transactions must be set up with a characteristic that holds the distribution code used to write-off the original amounts. For example,
    • Distribution codes used to record tax liabilities will typically reference the same distribution code for write-off (most organizations reverse tax liabilities at write-off time)
    • Distribution codes used to record revenue will typically reference a write-off distribution code used to record a write-off expense.
    • Distribution codes used to record receivables will typically not reference a write-off distribution code because receivables are implicitly written off when revenue and tax liabilities are written off.
  • Set up an adjustment cancellation code used when a users reverses a written-off bill (reversal involves canceling the write off adjustments).
  • Set up a Write Off Bill algorithm and plug it in on your Collection Class Overdue Rules. This algorithm will reference the adjustment type described in the previous point.