Create Provision Request – A summary of the activity

This activity allows you to generate a request to the book keeping function for creating provision for bad debts, which will be subsequently written off with the customer balances. Any organization, which does credit sales, usually encounters a situation where part of the receivables becomes unrecoverable.  Based on the organization’s experience, such bad debts are estimated and parked in a contra account called provision for bad debts. These provisions will be later written off against the customer receivables.

This activity allows you to create a request for provision for bad debts, based on overdue documents. You can also view the accounting information details. The system generates the provision request number on creating the request. The system updates the status of the provision request to “Fresh”. The provision request results in creation of a voucher in the “Journal Voucher” business component in the book keeping function.  The voucher will be authorized and posted to the finance book selected. The system also saves the login ID of the user and the system date along with the creation details.

Getting familiar with the pages inside

What you can do in this activity

Creation of Request for Provisions

Creation of Request for Provisions

Provision for bad debts can be created for the customer against overdue documents.

• Go to “Create Provision Request” page.

• Retrieve the document details by carrying out the search.

• Specify the provision amount for the documents and create the provision request.

The system updates the status of the provision request to “Fresh”. The system saves the login ID of the user as created by and the system date as the created date.