In the UK (and possibly other countries) there are rules governing the reclaim / repayment of VAT aged over six months. Those that are relevant to processing within Coins ERP+ are as follows:

For Outputs (that is, sales):

For Inputs (that is, purchases):

The basic process for creating a Bad Debt Batch is the same for each of the four ledgers affected (Sales Ledger, Purchase Ledger, Subcontract Ledger, Contract Sales Ledger):

Only one unposted bad debt batch can exist for each ledger. The selection can be run multiple times, each time will clear out the contents from the previous run. Transactions using VAT codes set up to be “VAT at pay” cannot be selected, as the VAT transactions have not yet been created.

Posting the batch will do the following:

Example of batch postings:

If a payment is later made to a transaction flagged as “bad debt” then the following will happen:

Run Process Bad Debt Invoices (%WPL3460RAIN):

A report will be generated, showing which invoices have been selected.

Re-run the selection with the Create Batch box ticked. The report will include the batch number.

From the list of bad debt batches (%WPL1250BCOB) select the batch and run the “Post Batches” action.

Run PL Bad Debt Posting Report (%WPL3470RCOB):

A listing of Purchase Ledger Bad Debt Invoices can be obtained by running the Open Item Detailed Report – Current and selecting Bad Debts Only.

Run Process Bad Debt Invoices (%WSL3540RRIN).

Re-run the selection with the Create Batch box ticked. The report will include the batch number.

If necessary, delete individual transactions: from the Bad Debt Batch screen, click the link for the new batch in the Batch Number column, and on the Transactions tab, select any unwanted transactions and click Delete.

From the list of bad debt batches (%WSL1200BCOB) select the batch and run the “Post Batches” action.

Run Bad Debt Posting Report (%WSL3550RCOB).

A listing of Sales Ledger Bad Debt Invoices can be obtained by running the Open Item Detailed Report – Current and selecting Bad Debts Only.

Run Process Bad Debt Certificates (%WSC3690RSBP).

Re-run the selection with the Create Batch box ticked. The report will include the batch number.

From the list of bad debt batches (%WSC1340BCOB) select the batch and run the “Post Batches” action.

Run Bad Debt Posting Report (%WC3700RCOB).

A listing of Subcontract Ledger Bad Debt Invoices can be obtained by running the SC Current Aged Detail by Contractand selecting Bad Debts Only.

Run Process Bad Debt Certificates (%WCS3230RCST).

Re-run the selection with the Create Batch box ticked. The report will include the batch number.

If necessary, delete individual transactions: from the Bad Debt Batch screen, click the link for the new batch in the Batch Number column, and on the Transactions tab, select any unwanted transactions and click Delete.

From the list of bad debt batches (%WCS1160RCOB) select the batch and run the “Post Batches” action.

To run the report manually, run the Bad Debt Posting Report (%CS324).

Run Bad Debt Posting Report (%WCS3240RCOB).

A listing of Contract Sales Ledger Bad Debt Certificates can be obtained by running the CS Open Item Report - Detail - Current and selecting Bad Debts Only.