Professional Documents
Culture Documents
31/05/2012
Document Name
Bad debt Write On/Off
Document Number
EU-FCM-TM-xxx
Location
Language
Europe
EN
Version
1.0
Document Type
Training Manual
Security Level
Non Confidential
APPROVALS
Owner
Annamaria Redliova
Job Title
Credit Analyst
Signed
Approval Date
Manager Approval
Esther Lozano
Job Title
Credit Manager,
Europe
Job Title
Credit Manager,
Europe
Signed
Approval Date
Signed
Approval Date
User Manager
Thomas Allmark
REVISION HISTORY
Version
1.0
1.
1.2
Release Date
New release
All
31/05/2012
Owner
This document provides specific instructions on how to deal with Bad debt Write
On/Off
The purpose of this SOP is to be used as a training manual/guide for new
starters in cash management
References
2.1.
3.
Sections Affected
2.
Description of
change
This SOP will be grouped together with all the others and posted on CHEPs
Intranet
Job Title
Responsibility
Document Controller
Process Champion
Team Leader
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1.1 Bad Debt Write On/Off is used to clear old items on the customer accounts if their value is
over 100EUR/75 GBP.
Bad Debt should be claim only if they are insolvent (bankruptcy or administration). If customer is
with Debt collection agency (DCA) or Non active customer the adjustment on their current
account should be done by Credit note.
WORK INSTRUCTION:
A. Cash management will receive Bad debt write off/on form and authorisation by Service
request (SR) send through Siebel database (CMS) from Credit management.
B. First of all cash allocation clerk needs to check status of the customer (if insolvent etc.)
Secondly clerk needs to check if correct authorisation is provided, the metrics of the
authorisation is shown on the below link (information may vary):
T:\Finance\RIESGOS\Authorisation matrix
1.2
AUTHORISATIONS:
FINANCIAL DIRECTORS:
GB10,IE10
DE10,SCAN,BE10,NL10,AT10,CH10,IT10
FR10,FR70,TR10,
ES10,ES20,PT10,PT20
PL10,CZ10,HU10,SI10,SK10,GR10
Storah, Richard
Sdunzig, Volker
Letestu, Laurent
Moreno, Andres
Czapka,Marek
CREDIT MANAGERS:
SOUTH/NORTH
Thomas Allmark
CSC MANAGER:
SOUTH/NORTH
Thomas Castelain
AUTOMOTIVE FD
Sdunzig, Volker
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1.3 Check if correct form is provided with all information needed as correct amount, SR number,
Value of LEC and Reason of Explanation:
1. AR clerk will check Customer account in SAP, if amount mention in form is correct.
Amount of LECs invoices (Lost equipment invoice) will be separated of total amount of
write off as it needs to be posted on different GL account. For preparation of the posting
Bad debt write off/on we need to have legal information about VAT is claimable or not.
! In case that it doesnt match or some information are missing please contact the person who
proposed the Bad Debt Write On/Off. !
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4 SR number
5 - Activity number
6 - Activity comments
Checking for approvals and template in Siebel
Enter the Service request by double clicking the number and the following screen appears:
7
8
4 - SR number
7 Authorisation tab
8 Fields od approvals if the write on/off has the correct approvals it appears
this field
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in
4
7
9
7
4 - SR number
9 - Attachment field click on the attachment field and select the corresponding
attachment with the template, by double clicking on it the template oppens.
1.4.2 Checking the customer account for f Bad debt write on/offs
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1
2
1
7
5
6
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7
9
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10
13
14
11
12
15
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Press enter
17
8
18
9
19
20
20
1
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Press enter and copy the next line item from the template
22
23
24
25
26
27
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Press enter and copy the next line item from the template
28
29
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Simulate the document and the following screen appears with all line items. The C (credit)
and D (debit) balance needs to come to 0 as it is shown below.
If the amount is 0 press the post icon and post the write on/off
After posting the Write on/off you need to clear the customer account
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30
31
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Press enter and by selecting the correct line items get the balance of the account to 0 not
assigned field to be 0
If the amount comes to 0 (1,2 cent difference is allowed) post the document.
Once the account is cleared you need to close the activity and send notification to the
requester in Siebel as shown below.
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QUICK GUIDE:
BAD DEBT WRITE OFF: (need credit on account)
Reference: WRITE OFF
Doc. Header Text: BAD DEBT WRITE OFF
Line items:
40 64010 WRITE OFF NET amount
40 31650 VAT (code) VAT amount
17 Customer GID - GROSS amount)
Text: A/C . BAD DEBT WRITE OFF
Cost center for pallet DE1PAFIN01
- for auto DE1AUFIN01
ES1PAFIN06 (ES10) and PT1PAFIN03 (PT10).
BAD DEBT WRITE ON: (need debit on account)
Reference: WRITE ON
Doc. Header Text: BAD DEBT WRITE ON
Line items:
Pstky 50 64035 WRITE ON NET amount
Pstky 50 31650 VAT (code) VAT amount
Pstky 07 Customer GID - GROSS amount)
Text: A/C . BAD DEBT WRITE ON
Cost center for pallet DE1PAFIN01
- for auto DE1AUFIN01
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New starter in reporting team will be trained on this process within first month of start date
I. Training Matrix
Name
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Job Title
Scope
Target Date
31.05./2012
New Starter
Credit Analyst/Credit
New starter
Controller
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