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Component documentationWrite-Offs

 

Using this component, you can write off open receivables and credits of business partners. Write-offs are required if receivables are uncollectible or payables cannot be paid, for example when the payment recipient cannot be identified.

Features

You can write off open receivables completely, or, if you want to waive partial amounts of open receivables for your customers, you can also write off open items partially. You have to allow partial write-offs explicitly in Customizing. You are free to specify the partial amount to be written off in the transaction Write Off Items.

When you write off an amount, the system clears the item written off, generates a write-off document, and automatically posts to the expense or revenue accounts defined in Customizing.

In Customizing, you can define rules for adjusting the tax for a write-off. If the expense account posted to is relevant for tax, the system also corrects the posted tax when you write off.

When writing off, you can also:

  • Inherit the G/L account assignment characteristic Profitability Segment Number (CO-PA) (PAOBJNR) from the document being written off to the write-off document

    The prerequisite for this inheritance is that you entered the value 1 (Inherit Item to Be Written Off) for the derivation of the CO account assignment in Customizing for Contract Accounts Receivable and Payable under Start of the navigation path Business Transactions Next navigation step Write-Offs End of the navigation path in the activities Define Specifications and Default Values for Write-Off and Define Specs and Default Values for Mass Write-Offs.

    Note Note

    Since SAP enhancement package 2 for SAP ERP 6.0, it is already possible to inherit the G/L account assignment characteristic Profitability Segment Number (CO-PA) (PAOBJNR) as a modification in event 5030. This modification is not affected by an upgrade to SAP enhancement package 6 for SAP ERP 6.0. That means, that if you have implemented logic in the installation-specific event 5030, the system continues to run through this logic when you write off.

    End of the note.

  • Using a function module, specify check rules in Customizing that the system uses to decide whether open items of a business partner can be written off and which these are

    For example, you can specify that receivables can only be written off if there are no credit items on the contract account and the receivables are more than six months overdue. If a user has the appropriate authorization, the system offers all open items to be written off. This means that the check rules are not applied. The system always applies check rules at a check level (business partner, contract account, contract, document), groups the open items to be written off at the check level, and applies the check rules to each group.

  • Update the creditworthiness of customers

You can reverse write-off documents, meaning that the receivables or payables become open again.