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In ContactsLaw, the bad debt recovery (transaction number prefix RR) is used to record funds received after a bad debt is recorded on a file. This type of transaction credits the bad debts controlled account and debits a bank account. It extends the behaviour of the general receipt.
 
Unlike the debtor receipt, the bad debt recovery activity does not include receipt allocation logic. The GST liability is calculated on a pro-rata basis, given the GST component associated with the outstanding debt and the amount recovered.
 
For performance and reporting purposes, a bad debt remains on the file even after it has been recovered; however, the bad debts balance is reduced.