Write Off

The posting logic of write offs is as follows:

1. The receivable posting in contract accounting creates – after reconciliation key transfer – a posting on the general ledger’s receivable-, revenue and tax account.
2. The incoming bank statement in general ledger accounting post the incoming payment against the bank clearing account and creates a payment lot when it is uploaded.
3. The payment lot processing for incoming payments in contract accounting distributes all payments of the lot to clear the open items in contract accounting and – after reconciliation key transfer – in the general ledger’s receivable account as well. In this example, the receivable of 58 EUR is only partially cleared by 20 EUR. The remaining open receivable amount of 38 EUR has to be written off.
4. The write off posting in contract accounting of the remaining amount of 38 EUR clears – after reconciliation key transfer – in the general ledger the receivable account but increases the sales deduction account with the receivable’s net value. The tax correction is posted as well.

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