Bad Debt and Write-Off Register
Per period: every WriteOff with Customer, original Invoice, amount, reason, and approver. Reconciles to the Bad Debt Expense GL account.
Credit controls
Make credit decisions visible before they change a customer balance.
PendingApproval
- WO-12605 INV-19541 in 9 d
- WO-31809 INV-94576 in 10 d
- WO-26540 INV-31841 6 d
- WO-18340 INV-11502 in 10 d
- WO-80033 INV-17904 11 d
WO-12605
- Invoice
- INV-19541
- Customer
- CUS-176
- Amount
- 14,192.01
- Reason
- Bankruptcy
- RequestedBy
- SD
Write-off approval waits for the controller / cfo.
Manage holds deliberately
CreditHolds records the customer, reason, initiating identity and date. The configured aging and credit-limit checks can raise a hold for the AR Manager to review. While active, the hold prevents the applicable invoice sends and recurring generation. Releasing one hold does not prove that all other customer restrictions have disappeared. Keep the underlying balance and credit-review evidence available, and test both the blocked and permitted paths before enabling automated hold creation for the full customer population.
Approval conditions
AR Manager releases the hold (Status: Active → Released) when the underlying overdue clears or after a credit-review approval.
Active
| Hold Number | Customer | Reason | Held At | Held By |
|---|---|---|---|---|
| CH-13323 | CUS-058 | AgingBreach | 17 Sep | ZP |
| CH-38136 | CUS-214 | CreditLimitExceeded | 23 Sep | NS |
| CH-71438 | CUS-120 | ManualReview | 15 Sep | BB |
| CH-63837 | CUS-205 | BankruptcyFiling | 27 Sep | ES |
| CH-30101 | CUS-198 | DisputeOpenOverThreshold | 22 Sep | AU |
| CH-34469 | CUS-040 | AgingBreach | 18 Sep | MC |
Review fees and their corrections
LateFees records the assessed amount and links its follow-on invoice to the original obligation. Apply the customer’s verified effective policy; the website does not prescribe a universal fee or legal rate. A repeated monthly run must not assess the same fee twice. When the AR Manager waives a fee, retain the waiver and reconcile the corresponding invoice adjustment. A sent or posted fee cannot be erased as though the customer document and ledger effect never existed.
Approve write-offs before posting
The AR Manager prepares WriteOffs with the invoice, customer, requested amount and reason. Controller / CFO decides the pending request. Approval authorizes the accounting handoff; Posted requires the confirmed ledger result. Only the posted amount reduces the invoice through WriteOffApplied, and a partial write-off leaves the remaining balance collectible. Reversal retains its own source and restores only the affected reduction. Review the amount against current open AR so simultaneous payments, credits or another write-off cannot extinguish the same obligation twice.
Modules
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Customer billing
Keep customer terms and recurring billing ready for the next invoice.
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Invoices and credits
Send clear invoices and keep every adjustment connected to its source.
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Cash application
Match incoming cash to the right invoices and explain every remainder.
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Collections
Give overdue balances a clear next action and accountable owner.
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Credit controls
Make credit decisions visible before they change a customer balance.
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Receivables reporting
Explain aging, collections and cash application with a consistent balance basis.
Reports
All reportsRoles and permissions
Owns the AR function. Approves WriteOffs, signs off on the period-end aging, and reviews DSO and bad-debt trend. The named approver on the GL post handoff to fin-accounting.
Owns the operational AR machine. Configures dunning policies, manages collections cases, releases credit holds, and approves credit memos under threshold. Escalates write-offs to the Controller.
The operational role — the day-in / day-out AR seat. Drafts and sends Invoices, applies PaymentsReceived against open Invoices, processes CreditMemos under threshold, sends manual dunning when a Customer-specific situation calls for it.
Account-owner read-only on own Customers' AR. Nudges the buyer when a deal goes overdue without exposing GL detail.
The buyer. Implicit role accessed through the customer payment portal — sees own open Invoices, can pay via the fin-payments-issued portal link, downloads own Invoices and Statements.
Executive read-only on aging and DSO. The owner, board member, or external auditor seat.
Related processes
Prepare and send invoices
Keep draft preparation, delivery and ledger confirmation distinct.
4 stages · 0 approvals
Receive and apply cash
Turn confirmed receipt evidence into attributable invoice allocations.
4 stages · 0 approvals
Resolve disputes and collect
Keep follow-up, dispute resolution and financial adjustments connected.
4 stages · 1 approval