1 write-offs (id.13). 2 current process – key components id media processes write-offs from mbox...

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Write-Offs(ID.13)

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Current Process – Key Components ID Media processes write-offs from MBox in the production system There are 2 types of write-offs:

1. Accounts Receivable bad debt

2. Vendor invoices for jobs which have been closed in MBox but new invoices are received and processed through A/P

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Proposed Future State Process - Details SSC will process the bad debt write offs (AR) for the agency via a

journal entry. For the vendor write-off, create a client related Non-Billable job in

Vantage to process vendor invoices.

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Proposed Future State Process - Details

Calculation Sheet for Bad Debts Reserve

91-180 181-270 271-360 > 3601040001 0.00 0.00 0.00 0.001040002 1,008.88 0.00 200.00 964,415.821040003 0.00 0.00 0.00 0.001040004 0.00 0.00 0.00 0.001040005 0.00 0.00 0.00 0.00

1,008.88 0.00 200.00 964,415.82

Reserve CalculationsSP&P Rates ---> 5% 25% 50% 100% Total Reserve Comments

1040001 0.00 0.00 0.00 0.00 0.00 No Reserve Needed1040002 50.44 0.00 100.00 964,415.82 964,566.26 Reserve Needed1040003 0.00 0.00 0.00 0.00 0.00 Not Material No Reserve Needed1040004 0.00 0.00 0.00 0.00 0.00 Not Material No Reserve Needed1040005 0.00 0.00 0.00 0.00

Total 50.44 0.00 100.00 964,415.82 964,566.26

Profit Center /Aging Buckets

Sample of Bad Debt Reserve:

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Proposed Future State Process - Details IPG SP&P 203 Allowance For Doubtful Accounts – Receivables:

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Proposed Future State Process - Details SSC Cash Applications receives a request from the agency to

write off bad debts

SSC will write-off bad debts based on the agency request

Bad debt ends up in Corporate Expenses

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Proposed Future State Process - Details For Vendor Write-Offs, ID Media/MPC will create a client related

non-billable job

Create an internally approved estimate with no material code

Create a Production PO with the material code “10759” (production fee) for the amount of the vendor invoice

Vendor invoice will be attached to the PO and approved by the agency for payment

Post vendor invoice

Execute General Ledger report (Zgl_Activity – GL Line Item With Offsetting Information) to view posting

show

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Proposed Future State Process - DetailsCreate Client Related Non-Billable job, with manual

budget

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Proposed Future State Process - Details

Create production PO using material#10759

(production fee) for the amount of the

vendor invoice

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Proposed Future State Process - Details

Post Vendor Invoice

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Proposed Future State Process - Details

Post Vendor Invoice

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Proposed Future State Process - Details

Execute zgl_activity

report to view posting.