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Provision for doubtful debts creation

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edited Feb 22, 2024 11:43AM in Receivables & Collections 3 comments

Hi,

We want to know the process of creation of provision for doubtful debt in fusion. We want to make these provisions invoicewise.We want to keep the original invoice open. below are the accounting entries for above :

1)     JV for Provisions-

Prov for Doubtful Debts (Expense) Dr

Prov for Doubtful Debts (Liability) Cr


2)   If payment received against provision -Reversal Provision

 Prov for Doubtful Debts(Liability) Dr

Prov for Doubtful Debts(Expense) Cr


3) if Write off – Accounting of write off as bad debts

Prov for Doubtful Debts(Liability) Dr

Provision written back (income Account) Cr

4) Bad debts

Bad Debts Dr

Debtors Cr

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