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--- en:mr_aru_reskontro [2024/05/17 10:53] – vilja
+++ en:mr_aru_reskontro [2024/05/17 10:54] (current) – [5.4 Calculation of the reserve for doubtful debts based on the experiential method] vilja
@@ Line 167: / Line 167: @@
 ==== 5.4 Calculation of the reserve for doubtful debts based on the experiential method ====
+**In general**
+During the closing of the financial year, it is important to assess the probability of receipt of debts, and if it turns out that their value has decreased, then the debts must be adjusted for allowance. All available information must be taken into account.
+If the debt is individually significant, the decrease in its value must be assessed separately. However, for debts that are not individually significant and where it is not directly known that their value has decreased, the decrease in value can be assessed as a group. When assessing as a whole, previous statistics on doubtful debts **(indicating what percentage they constituted of total debts)** are helpful, making both the amount of doubtful debts and the expense estimate **approximate**.
+If you use allowance as a group of unpaid invoices from buyers, you can use Directo's automatic functionality of creating a reserve for doubtful debts which speeds up the calculation of the amount/change in the reserve and accounting through the "Make transaction" button. In the course of this functionality, a pre-agreed percentage of the total amount of sales invoices not received by the due date is calculated and reflected as an expense of doubtful debts by object. You can change the agreed percentage at any time as needed.
+=== 5.4.1 Settings ===
+System settings
+{{:et:kellylytom20240419-113152.png}}
+Picture (16)
+  ***Bad and Doubtful Debts**  - allows you to enter a balance sheet account, where the reserve for the cost of doubtful receipt is entered (asset account).
+  ***Doubtful debts expense**  - allows you to enter an account to which the cost of doubtful receipt is entered (expense account).
+The following 2 settings go hand in hand, i.e. an equal number of data must be filled in:\\
+  ***Allowance for doubtful debts - experiential allowance %** - allows you to determine   how much of the corresponding group of overdue invoices in % is transferred to the reserve for doubtful invoices.
+  ***Allowance for doubtful debts - groups of overdue invoices** - allows you to set groups of overdue invoices in days.
+Example:
+{{:et:kellylytom20240419-122255.png}}
+Picture (17)
+If the number of entered data is unequal, you will receive an error message:
+{{:et:kellylytom20240419-124454.png}}\\
+Picture (18)
+===  5.4.2 Accounts  ===
+Since doubtful debts accounts must not have previous transactions, create a new balance sheet and income statement account.
+If you are __a starting company__ and there are no previous transactions on these accounts, you do not need to create new accounts. \\
+:!: If you still want to use existing accounts, then before making the first transaction, __zero the balances of the accounts in such a way that the balances of the accounts also go to zero across objects__.
+===  5.4.3 Calculation of the amount of the reserve for doubtful debts  ===
+**Sales ledger report**
+The calculation and transaction of the amount of the reserve for doubtful depts is done in the Sales ledger report, which you can find ''Sales > Reports > Sales ledger''.\\
+If "Allowance for doubtful debts - groups of overdue invoices" and "Allowance for doubtful debts - experiential allowance %" are filled in the system settings, selecting "Doubtful Debts" from the filter and "Object" in total will result in a view where:
+  *at the bottom of the sales ledger report, the calculations of the amounts to be recorded as doubtful appear by __groups of overdue invoices__
+  *in the right side of the report of the sales ledger report, the calculations of doubtful amounts to be transferred __by objects__, which is comparable to the balance sheet, if no direct entries have been made to the accounts, and
+  *__"Make transaction"__ button.
+{{:et:kellylytom20240419-133359.png}}
+Picture (19)
+If there is not an equal amount of data in the setting "Allowance for doubtful debts - groups of overdue invoices" and "Allowance for doubtful debts - experiential allowance %", you will receive an error message:
+{{:et:kellylytom20240419-133640.png}}
+Picture (20)
+=== 5.4.4 Transactions of the reserve for doubtful debts ===
+A transaction for the reserve for doubtful accounts is created by pressing the "Make transaction" button.
+:!: **Important to know** before making a transaction:
+  * Transactions  for the reserve of doubtful debts __must not be created with an object filter__. One transaction must be made at a time, because selecting a filter will give the transaction an incorrect result. Transactions will not be correct even if __"transaction objects" are assigned to the accounts__.
+  * Transactions to the reserve for doubtful debts can also be made manually, but in this case it must be done __consistently__, not mixed with the "Make transaction" functionality.
+  * //In the future//, when creating a transaction for the reserve of doubtful debts, it will also be possible to choose whether you want to create the transaction via the object level or with a specific given object.
+**"Make transaction" button**:
+  *Using the "Make transaction" button, transactions are made by __the objects of the invoice headers__ ("Object" column). In the case of multi-level objects, all levels of the object are included in the transaction.
+  *Transactions are created according to the logic that if the balance of the reserve changes (increases or decreases), then the amounts of the change go to the transaction __by object__.
+  *You can create the transaction multiple times on the same date by pressing "Make transaction", and if there are changes, the entry lines are overwritten.
+  *Transactions can be deleted and recreated if needed.
+Before you start making a doubtful dept transaction, you can see how the transaction is divided between objects:
+{{:et:kellylytom20240419-140745.png}}
+Picture (21)
+Example: The sales ledger is taken as of 31.12.2023 and a reserve transaction is created based on it:
+{{:et:kellylytom20240419-141113.png}}
+Picture (22)
+Transaction:
+{{:et:kellylytom20240419-143223.png}}
+Picture (23)
+Next time, the sales ledger is taken as of 30.06.2024 and based on it, a reserve transaction is created, which contains the change in the reserve > the initial balance of the reserve was 316,133.18 minus the final balance of the reserve 613,698.97 = an increase in the reserve 297,565.79
+{{:et:kellylytom20240419-142637.png}}
+Picture (24)
+Transaction:
+{{:et:kellylytom20240419-143658.png}}
+Picture (25)