2098541 - No Corrective Tax Posting when Clearing Bad Debt Invoice due to Insolvency

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2098541 - No Corrective Tax Posting when Clearing Bad Debt Invoice due to Insolvency


A customer of your Canada-based company is unable to settle an invoice due to insolvency and you need to reflect this in ByDesign. To achieve this, you follow the directions provided in Help Center article Reserves for Bad Debt, subsection Writing Off a Receivable.

Reproducing the Issue

You proceed to manually clear the customer invoice as follows:

  1. Go to the Receivables work centre.
  2. Go to the Customer Accounts view.
  3. Open the relevant customer account.
  4. Select the document to be written off and click Clear Manually.
  5. In the New Manual Clearing screen, use S01 - Insolvency as Payment Difference Reason and post the clearing.
  6. Although the help article mentions that "The VAT amount is corrected on the basis of your country settings", you can't see any corrective tax postings in the resulting Journal Entry or a subsequent VAT Return Run.


This functionality has not been implemented in all country versions of ByDesign. Among others, Canada is currently not supported.


For countries where this functionality is not yet supported, any tax corrections for insolvency-based write-offs would need to be performed manually according to the country-specific regulations. We recommend using a New Journal Entry Voucher to do so.


KBA , SRD-FIN-ACR , Receivables , Product Enhancement


SAP BUSINESS BYDESIGN 1611 ; SAP BUSINESS BYDESIGN 1705 ; SAP Business ByDesign 1511 ; SAP Business ByDesign 1602 ; SAP Business ByDesign 1605 ; SAP Business ByDesign 1608