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Bankrupt Customer

Former Member
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Is there a way to designate a customer as bankrupt?

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Answers (1)

Answers (1)

Former Member
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Farah:

You mean to say that you wont be able to receive any money from the customer?

If that's the case then you need to maintain bad debts expense account. (it may be already present in your chart of accounts)

You will need to credit the customer account with the X amount and debit Bad Debts Accounts, which will show up as an expense.

Normally it is the responsibility of people from collections management to determine whether a customer account is delinquent (if he cannot pay any money) or not.

They determine this after their dunning processes (payment reminders) is completely over.

All you need to do make sure the accounts as mentioned above are maintained.

The end users normally make the postings.

Vj

Assign points if info helps