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 Carrying out Manual Incoming Payments: Posting Irrecoverable Debt

Prerequisites

Incoming payments cannot clear all open items. An underpayment amount remains.

You should only carry out the following procedure if you are sure that it is not possible to recover - partially or wholly - the remaining rent receivables for a particular reason.

Procedure

  1. Choose the Open items function.

You receive a list of open items or the unqualified down payments made by the customer, sorted according to lease-out.

Note Note

If the customer is assigned to several lease-outs, the open items of these lease-outs are presented in this list.

Open items with a payment block are listed but cannot be selected.

The function only displays open items that are due up to the specified posting date.

End of the note.

  1. Flag all open items and unqualified payments and choose the Back function.

Note Note

You can only select particular items and post the resulting underpayment as irrecoverable debt.

End of the note.

  1. Choose Start of the navigation path Goto Next navigation step Irrecoverable debt End of the navigation path

The system automatically adopts the open item total as irrecoverable debt. (The amount in the Not assigned field appears with a minus sign. )

Note Note

It is only possible to group the amounts as irrecoverable debt if the amount to be assigned = 0.

End of the note.

  1. Save your entries.

Result

Based on the incoming payments, the system clears open items as far as possible. A new item - Irrecoverable debt - with the underpayment amount is updated on the tenant account.

The Irrecoverable debt item is posted as an expense to a balance sheet account defined as such in Customizing.