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

richf
richf Registered Posts: 86 New contributor ?
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

  • richf
    richf Registered Posts: 86 New contributor ?
    I have another fundamental question!!

    Would the Credit Controller or Accounts Receivable Clerk be in charge of recording remittance advice?
  • amurray
    amurray Registered, MAAT, AATQB Posts: 304 Dedicated contributor ? ? ?
    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, MICB PM.Dip.
    Completed AAT in March 2020
  • richf
    richf Registered Posts: 86 New contributor ?
    Thanks @amurray
    I've not been active on here for a while and missed your post :)
    amurray
  • amurray
    amurray Registered, MAAT, AATQB Posts: 304 Dedicated contributor ? ? ?
    No worries at all :) Glad to have helped.
    MAAT, AATQB, MICB PM.Dip.
    Completed AAT in March 2020
Privacy Policy