This article shows how to write bad debt with a chit within the Accounts section of Unity Practice Management

Overview

This chit writes off bad debts and updates the VAT transactions. This does not mean that bad debts written off can be claimed back under the VAT regulations - if in doubt please check with your local VAT office on your entitlement to reclaim VAT on bad debts.

How To Access The Chit

1. Open the Accounts program.
2. Click the posting icon
3. Click the Office folder to display a list of Office chits
4. Double click the Bad Debt Write Off option

How To Post The Chit

1. Select a branch.
2. Select a nominal to write off to.
3. Select a matter code by either entering a matter code manually, or search for a matter code by clicking the ellipsis
4. Enter the amount to write off.
5. Enter a reference.
6. By default, a VAT code "E" will be allocated. If you need to adjust the VAT being reclaimed:
7. Click the ellipsis next to the VAT field and a new window will pop up.
   • • All fields within the window are editable. Simply locate the required field and re-enter the new information.
     • If you need to split the VAT between different codes, click "+"to add a new record.
     • Click "-" to delete a record.
     • It may be useful to set up a new VAT rate (e.g. D) as 17.5% in order to segregate the VAT on bad debts written off in the "VAT Transactions Report" from the normal VAT transactions.
     • Click OK to save any changes or click Cancel  to quit the window without saving.
8. To select details of the bills or disbursement being written off:
   • • Click the ellipsis next to the gross field and a new window will pop up.
       • • This window is divided into 2 sections. The upper section will display any unpaid bills, and the lower section will display any unpaid disbursements.
         • The lower section allows you to directly mark disbursements as paid, i.e. if you do not intend to include them on a bill. This will help keep the unbilled disbursement statistics and reports accurate.
     • To make partial bill payment/disbursement, locate the required record then enter an amount into the "Amount To Credit" field.
     • To fully pay a bill or disbursement locate the required record then tick the Pay All checkbox.
     • Click OK to save any changes or click Cancel to quit the window without saving.
9. To enter a narrative either enter the text manually or click to select from a list of standard narratives.
10. Select a posting date
    • • The posting date field will default to the current date.
      • If the date selected is within the next financial month, then the "Post Into Next Month" checkbox will become available. The checkbox will be ticked by default which means the transaction will automatically be posted into the next financial month. if you remove the selection, this will disable the post ahead feature allowing the transaction to be posted into the current financial month.
11. Click to post the transaction to the ledger card.

Miscellaneous Options

1. Click Posting on the top toolbar to enable a dropdown menu. From here you can open another chit type.
2. Click View on the top toolbar to enable a dropdown menu. From here you can display either the accounts or the time ledger card for the selected matter.
3. Click Options on the top toolbar to enable a dropdown menu. From here you have 3 options:
   1. • Click Chit Colours to enable/disable posting chit colour schemes.
      • Click Dialog Style to enable/disable the dialog style. This affects the role of the ENTER key when you are filling in a posting chit. When the dialogue style is enabled there will be a default button on the chit which you can activate by hitting enter/return without the need to focus the button first, try it out! Make sure the "Dialog Style" option is ticked and open a bill chit. You will see that the Post button has a border around it. This means it is the active button, so when you press the enter/return key the chit will attempt to post regardless of where your cursor is on the chit. 
      • Click Case-Sensitivity Dictionary to launch the Case Sensitivity Dictionary utility.
4. Click Keep to enable a dropdown menu. From here you can select to retain the branch, bank, date, details, reference or narrative for future postings.
5. Click Cancel to clear the contents of the chit.