Bad debts configuration steps
Step 1: – Define Methods
Access the transaction using one of the following navigation options.
SAP IMG Path: – SPRO > IMG > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transaction > Closing > Valuate > Reserve for Bad Debt > Define Methods.
Transaction Code: – OB04
On the “Change View “Receivable provision: Methods”: overview” select new entries to define the percentage of provision.
Step 2: – Creation of GL accounts – FS00
Step 3: – Define Accounts for Reserve and Bad Debts
SPRO > Financial Accounting > Accounts Receivables and Payables > Business transactions > Closing > Valuate > Define Accounts for Reserve and Bad debts
Transaction Code: – OBXD
> Enter Chart of accounts and press enter
> Select Debit/credit and provision method under accounts are determined based on.
> Save the settings.
On the “Configuration Accounting Maintain: Automatic posts – accounts” update the following information
Step 4: – Special GL Account for the Bad debts – FBKP
Select an account type and enter reconciliation account and special G/L account
Step 5: – Transfer posting for doubtful Receivable
SAP Path: – Accounting > Financial Accounting > Accounts Receivable > Periodic processing > Closing > Value > Receivable transfer posting (Gross)
Transaction Code: – F103
- Enter customer account.
- Enter appropriate provision method.
- Special G/L Indicator for Doubtful Rec: E (Reserve for bad debts).
- Enter reconciliation account.
- Batch input session name as SAPF103.
- Posting Key:09 (special gl debit), Posting document: DA (customer document).
- Execute (F8).
Successfully bad debts are configured in the SAP.