Malysia: Since 2013

Debit Balance

Regularly reconcile debit balance items.
Maintain a central system to track debit balance company wide.
Communicate effectively with vendors.

A debit balance occurs when a credit is posted on account, but is unable to deduct due to either an inactive vendor account, currencies are different, or the payment method has changed.

In this case, previously posted transactions in SAP remained dormant for over 120 days and needed resolution either by providing a proper audit trail, refund, or write off resolution. The debit balance ($49K) was due to invoices being posted with a different payment method and bank type so it remained open on the account (the invoice was in CAD, but paid twice using USD and CAD currencies in error).

After confirming with the vendor the credit was still available, we worked with appropriate client AP staff to update the payment method and partner bank type of the credit posting; the payment method was changed from W to T and partner bank type from BNK4 to BNK1 to allow deduction against next USD payment.