The general process is as follows: the asset management department submits an application, the financial department submits an audit opinion, and the legal affairs department provides or confirms the legal documents and related materials that prove the loss of relevant assets, and submits them to the general manager, the board of directors or the shareholders' meeting for approval. After approval, the bad debt reserve accrued as bad debt loss write-off shall be debited to the account of bad debt reserve and credited to the account of accounts receivable.

Write-off of bad debts means that on the basis of inventory and verification, enterprises should treat all kinds of accounts receivable that are really irrecoverable as bad debts losses and deal with them in time. Belong to the production and operation period, as the current profit and loss; If it belongs to the liquidation period, it shall be regarded as liquidation profit and loss. After the disposal of bad debt losses, it shall be reported to the competent tax authorities in accordance with the relevant provisions of the tax law and accounted for in accordance with the methods stipulated in the accounting system.

Extended data:

The bad debt loss of the enterprise shall be confirmed according to the following methods according to different situations:

(1) If the debtor is declared bankrupt or revoked according to law, it shall obtain the bankruptcy declaration, the certificate of cancellation of industrial and commercial registration or revocation of license or the documents ordered by the government department to close, and after deducting the part paid off by the debtor's liquidation property, the accounts receivable that are still uncollectible shall be regarded as bad debt losses;

(2) Accounts receivable due to the debtor's death or being declared missing or dead according to law, whose property or inheritance is insufficient to pay off and there is no heir, shall be regarded as bad debt losses after obtaining relevant legal documents;

(3) The receivable involved in the lawsuit is judged or ruled by the effective judgment or ruling of the people's court to lose the case, or it is ruled to terminate the execution because it cannot be executed despite winning the case, which is regarded as bad debt loss;

(4) If the accounts receivable that are overdue for three years have a record of consultation on collection by the enterprise according to law, and it can be confirmed that there is no business exchange within three years, the balance after deducting all kinds of money payable to the debtor and the compensation of relevant responsible personnel shall be regarded as bad debt loss;

(5) Accounts receivable overdue for 3 years, if the debtor is abroad and in Hongkong, Macau and Taiwan Province, China, and has not been recovered after collection according to law, and there is no business transaction within 3 years, shall be regarded as bad debt losses after obtaining the opinions on termination of collection issued by overseas intermediaries or the certificates of debtor's escape and bankruptcy issued by commercial institutions of Chinese embassies (consulates) abroad.

For the money owed by the internal units of an enterprise group, the creditor shall write off the creditor's rights at the same time as the debtor's debt, and sign a written agreement to provide each other with financial information on internal handling of the creditor's rights or debts.

Baidu Encyclopedia-Bad Debt Write-off