Overview of the tasks in this process:
AR-050-010: Send out Dunning Letter
After analyzing billed amount, Credit Management sends out dunning letter to customers if necessary.
For approval matrix, please refer to internal control file.
Credit Management (Responsible)
AR-050-020: Request for Specific Bad Debt Provision / Bad Debt Write-off
Credit Management requests for specific bad debt provision / bad debt write-off by emailing approved "Bad Debt Application Form" to AR Manager (BO).
For approval matrix, please refer to internal control file.
Credit Management (Responsible)
For "Bad Debt Application Form", please refer to Appendix 3
AR-050-030: Receive and Review the Application Form
AR Manager (BO) receives and reviews the approved bad debt application form.
For approval matrix, please refer to internal control file.
Account Receivable Team - AR Manager (BO) (Responsible)
AR-050-040: Return the Application Form for Revision
If no approval, AR Manager (BO) returns the application form to Credit Management team to revise.
Account Receivable Team - AR Manager (BO) (Responsible)
AR-050-050: Instruct AR Accountant to Process Bad Debt Treatment
AR Manager (BO) instructs AR Accountant (BO) to process bad debt treatment by email.
Account Receivable Team - AR Manager (BO) (Responsible)
AR-050-060: Process Bad Debt Treatment in RCS
AR Accountant (BO) processes Bad Debt Provision and Bad Debt Write off in RCS. AR Accountant prints out voucher and gets signature of authorized person (refer to internal control file). After approval, AR Accountant (BO) sends all below document to RtR FO Support
Approved Bad Debts
Bad Debt Application Form
Bad debts Calculation (If applicable)
Voucher
Relevant T-Code:
For Bad Debt Provision: F-21
For Bad Debt Write off: FB05
SAP
Account Receivable Team - AR Manager (BO) (Responsible)
1. T-Code: F-21 (Bad Debt Provision)
A provision according to "Bad Debt Provision Application Form".
1.1 On the screen "Enter Transfer Posting: Header Data", enter information in the fields as below:
"Document Date": the current date.
"Type": data are displayed by default in this field: DA: customer document.
"Company Code" / "Currency/Rate": fill in them as per the request.
"Reference" / "Doc. Header Text": a simple text.
Then press "Enter" to go to the next screen.
1.2 On the screen "Enter Customer Document: Add G/L account item", enter information in the fields as below:
"Amount": the amount relevant to the account: 98340400: bad debts depreciation.
"Cost Center": As per different company.
"Text": a simple description.
"PstKy": the posting key : 40.
"Account": account 49100100: trade receivables/valuation allowances.
1.3 On the screen "Enter Customer document: Add G/L account item", enter information in the fields as below:
"Amount": corresponding to the debit of the account 49100100.
"Text": a simple description.
"Posting Key": 09 , "Account": Customer code , "Special G/L": D [Legal reserve doubtful product]
Then, validate by clicking on 
or by pressing "Enter"
Or click 
for put coding block.
1.4 On the pop-up window, enter transaction type: F25.
Then, click 
1.5 Return to the screen "Enter Customer document: Add G/L account item"
"Amount": corresponding to AR that post to allowance.
"Text": a simple description.
"Posting Key": 15 , "Account": Customer code [By choose open item to clear]
Then take the path "Document => Simulate" in order to simulate the document entry.
1.6 On the screen "Enter Customer document: Display Overview",
Note that it is correct.
Then click " Save " button or press "Ctrl + S".
1.7 The document number assigned to the entry is displayed.
2. T-Code: FB05 (Bad Debt Write Off)
2.1 On the screen "Post with Clearing: Header Data", enter information in the fields as below:
"Document Date": the current date.
"Type": data are displayed by default in this field: DA: customer document.
"Company Code" / "Currency/Rate": fill in them as per the request.
"Reference" / "Doc. Header Text": a simple text.
"PstKy": the posting key: 40.
"Account": account 98300801 for bad debt write-off.
Then press "Enter" to go to the next screen.
2.2 On the screen "Post with Clearing Add G/L account item", enter information in the fields as below:
"Amount": the amount relevant to the account: 98300801: fc losses/bad debts.
"Cost Center": As per different company.
"Text": a simple description
Then Click "Choose open item" 
for chooses the open item that posted on Bad debt provision.
2.3 On the screen "Post with Clearing Process open items", double click choose the open item to clear
Then take the path "Document => Simulate" in order to simulate the document entry
2.4 On the screen "Post with Clearing Display Overview", enter information in the fields
Note that it is correct.
Then click " Save " button or press "Ctrl + S".
2.5 The document number assigned to the entry is displayed.
AR-050-070: Email Credit Management Team
AR Accountant (BO) emails Credit Management team the result of the process and send to RtR FO Support for filing.
Account Receivable Team - AR Accountant (BO) (Responsible)
AR-050-080: Filing
RtR FO Support files the following documents and keeps in a safe place.
Approved Bad Debts
Bad Debt Application Form
Bad debts Calculation (If have)
Voucher
RtR Team – RtR FO Support (Responsible)