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Projects:Doubtful Debts/Functional Specification

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Contents

Introduction

This document contains the functional specifications for the Doubtful Debts functionality, which is intended to deliver capabilities to manage Doubtful debts.

Glossary

Doubtful Debt Document

It is an accounting document that has a direct relation with an invoice payment plan. It stores the percentage (amount) of the invoice outstanding amount that has been recognized as doubtful debt. Each doubtful debt document is linked only with one invoice (payment plan). This will allow to reactivate documents independently.

Statuses:

Workflow:

Doubtful Debt generation process

A new standard window will be created to behave as a filter window (following the approach of Open/Period control window). The user will create a new record (process parameters will be persisted) containing the following information:

Once the required information has been filled the user will preview in a Pick&Execute window all the invoice payment plans that meet the filter conditions.

It will possible to edit the percentage (amount) to recognize as doubtful debt. The doubtful amount will be calculated (and defaulted) based on the outstanding amount of the invoice and the percentage entered on the filter window.

The process will generate as many doubtful debt documents as invoices selected in the pick&execute window.

Accounting

Configuration

Example

There is a sales invoice for "Healthy Food Supermarkets, Co." of 1000€. The full amount has been considered as doubtful debt because the customer has declared bankruptcy.

Account Description Debit Credit
436 Clientes de dudoso cobro 1000
430 Clientes 1000

Record the credit impairment.

Account Description Debit Credit
694 Pérdidas por deterioro de créditos comerciales 1000
490 Deterioro de valor de créditos por operaciones comerciales 1000

"Healthy Food Supermarkets, Co." pays 250€

Account Description Debit Credit
570 Caja,euros 250
436 Clientes de dudoso cobro 250

Undo the credit impairment.

Account Description Debit Credit
490 Deterioro de valor de créditos por operaciones comerciales 250
794 Reversión del deterioro de créditos comerciales 250

Register as a bad debt because the debt cannot be collected and all reasonable efforts to collect it have been exhausted.

Account Description Debit Credit
650 Pérdidas de créditos comerciales incobrables 750
436 Clientes de dudoso cobro 750

Remove the credit impairment.

Account Description Debit Credit
490 Deterioro de valor de créditos por operaciones comerciales 750
794 Reversión del deterioro de créditos comerciales 750

Requirements

Num Requirement Importance Status
1 Ability to preview the doubtful debts based in a given criteria. Must Have not done
2 Ability to edit the percentage (amount) of the proposed the doubtful debts. Must Have not done
3 Doubtful debt accounting document. It will generate the accounting and it will have the traceability to the source document (sales invoice). Must Have not done
4 The document can be reactivated. Must Have not done
5 Ability to configure the account to be used for Allowance for Doubtful Debts. Must Have not done
6 Aging Balance: ability to include/exclude doubtful debts in the report. If it is included it should be displayed separately. Must Have not done
7 Ability to exclude some customer from doubtful debt process. Must Have not done

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