Setup

1. On the Bad Debts Reserve Setup page, fill in the following fields:

Field name	Description
Reserves for Bad Debts Nos.	Specifies the code of the number series that will be used to assign numbers to unaccounted bad debt reserves.
Posted Reserves for Bad Debts Nos.	Specifies the number series code that will be used to assign numbers to recorded provisions for uncollectible receivables.
Date Analysis Type	Date Analysis Type = Posting Date Document, the quantity of days of Bad Debts must be calculated from the posting date. Date Analysis Type = Due Date Document, the quantity of days of Bad Debts must be calculated from the Due Date of the document.
Reserve Posting Type	Specifies the type of posting for bad debt reserves.
Reversal Period Formula	Specifies the formula for the date of reversal of provisions for uncollectible receivables.
Post detailed operations of the Reserve	Specifies the detail required for accounting for bad debt reserves.

2. Create risk groups on the Bad Debt Risk Groups page that determine the doubtfulness coefficient. To do this, specify the Code and Name Group.
3. On the Bad Debt Risk Coefficient page, set up doubtfulness coefficients by group and period:

Field name	Description
Bad Debt Risk Group	Specifies the code of the risk group, according to which the coefficient of doubtfullness will be determined.
Start Date	Specifies the date from which the setting will be used.
Quantity Days	Specifies a formula for determining the number of days to determine the debt factor.
Reserve,%	Specifies the percentage for debt reserve calculation.

Note
For each combination of Bad Debt Risk Group and receivables term, the last period should be a period not limited by the upper limit. For example > 90.
Recommendation: after setting up the Bad Debt Risk Coefficient, use the Check Debt Risk Period function, which will detect if the periods superimposed on each other were specified in the setting.

4. On the Customer Card, indicate the Bad Debt Risk Group to which the client belongs.

5. In the Customer Posting Groups settings, specify the accounts:

• Reserve of Overdue Receivables Account - specifies the general ledger account to use when you post Reserve of Overdue Receivables Acc. in this posting group.
• Expenses For Reserves of Overdue Receivables Account - Specifies the general ledger account to use when you post Expenses For Reserves of Overdue Receivables Acc. in this posting group.