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Would a Accounts receivable clerk require access to main ledger to write off bad debt?

richfrichf Just JoinedRegistered Posts: 86
Hi all,

I'm busily working on the nonsense which is my case study based ISYS project and just realised I may not entirely understand something that I thought I had assumed!

Sorry I don't really work in accounts so my knowledge is limited of usual workings, and I'm doing my fraud risk section which is about as foreign as it gets for me!

What access would be required to write off a bad debt? would access to the sales ledger be sufficient? or would access to the main ledger be required?

Thanks all!

P.s. I put the above text in bold as I tend to ramble, and though people might miss the question lol.

Comments

  • richfrichf Just Joined Registered Posts: 86
    I have another fundamental question!!

    Would the Credit Controller or Accounts Receivable Clerk be in charge of recording remittance advice?
  • amurrayamurray Feels At Home Registered, MAAT, AATQB Posts: 267
    Hi Rich,

    Just came across this post. To write off a bad debt, you'd need access to the Sales Ledger & Main Ledger. Washing the bad debt off the customer account and hitting the expense account found in the main ledger (GL). This would then show as a charge to the P&L.

    I'd also say the AR Clerk would be in charge of recording remittance advice, and allocating the cash when it arrives. Normally the Credit Controller would chase the debt and agree a payment date, however having said that; depending on the size/nature of the business the Credit Controller may indeed allocate remittance advices.
    MAAT, AATQB, FIAB, MICB PM.Dip.
  • richfrichf Just Joined Registered Posts: 86
    Thanks @amurray
    I've not been active on here for a while and missed your post :)
    amurray
  • amurrayamurray Feels At Home Registered, MAAT, AATQB Posts: 267
    No worries at all :) Glad to have helped.
    MAAT, AATQB, FIAB, MICB PM.Dip.
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