Doorways has a specific account for tracking the bad debt accrued for each tenant. The bad debt account is designed to keep track of what is owed to the Housing Authority by a tenant to reduce the risk of losing this information.
Below are some important best practices surrounding bad debt in Doorways:
The tracking account is not an AR account and therefore will not affect the receivables balances in your general ledger.
Bad debt balances should only be transferred to the Bad Debt tracking account once the amount has been written off or dealt with outside of Doorways
This is for reporting and tracking purposes within Doorways
Any amount of money stored in the Bad Debt tracking account will show up on the Bad Debt Report
The process of writing bad debt off traditionally indicates that a tenant can:
No longer pay back the bad debt
No longer live in a unit from the Housing Authority
Should you choose to allow a tenant to make payments to their Bad Debt, please contact an HDS Financial Support Specialist to assist you in setting this up.