Undo Bad Debt Status for an Employee Custody

If an employee custody was incorrectly recorded as a bad debt, you can reverse this action and restore the remaining balance to the employee custody account. This guide explains how to undo the bad debt status and what happens afterward.

Before You Begin

You must have the permission to edit employee custodies in order to perform this action.

The “Reopen” button will only appear if the custody status is currently set to “Bad Debt.”

Steps to Undo the Bad Debt Status

• From the main menu, click Finance.
• Select Employee Custodies.
• Open the required custody from the list.
• Click the “Reopen” button.
• A confirmation message will appear: “Are you sure you want to cancel the bad debt status?”
• Click “Confirm” to complete the action.

What Happens After Confirming?

Journal Entries Deleted: The journal entries that were created when the bad debt was recorded are removed, restoring the balance back to the employee custody account.

Balance Restored: The remaining balance is returned to exactly what it was before the bad debt was recorded.

Status Updated: The custody status changes from “Bad Debt” back to “Open.”

Custody Reopened: The custody becomes fully editable again, allowing modifications and additions.

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