{"id":999976271,"date":"2025-06-29T15:20:37","date_gmt":"2025-06-29T08:20:37","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999976271"},"modified":"2026-08-27T16:28:57","modified_gmt":"2026-08-27T09:28:57","slug":"how-to-handle-it","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/how-to-handle-it\/","title":{"rendered":"How to Handle Bad Debt Effectively for Businesses"},"content":{"rendered":"<article class=\"bizzi-template-page\" aria-label=\"Guide to handling bad debts for businesses\">\n<div class=\"template-sapo\">\n<p>When an accounts receivable is overdue or shows signs of being difficult to collect, businesses should not rush to write it off the books. The appropriate course of action usually follows this order: <strong>Verify balances and records \u2192 remind debtors, reconcile and negotiate \u2192 classify risks, make provisions when conditions are met \u2192 consider legal measures \u2192 process or write off accounts receivable when conditions are met<\/strong>.<\/p>\n<\/div>\n<aside class=\"bizzi-answer\" aria-label=\"Quick reply\">If an accounts receivable has become difficult to collect, a business should not immediately write it off. Verify the balance and documentation, continue to remind the debtor or negotiate, assess the conditions for making provisions, preserve the right to claim payment, and only write it off when the debt truly meets the conditions, documentation, and authority as stipulated by regulations.<\/p>\n<\/aside>\n<section id=\"no-phai-thu-kho-doi-la-gi\" class=\"template-section\">\n<h2><span class=\"ez-toc-section\" id=\"No_phai_thu_kho_doi_la_gi\"><\/span>What are uncollectible accounts receivable?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In accounts receivable management, <strong>uncollectible accounts receivable<\/strong> This can be understood as the amount of money a business has the right to collect, but the likelihood of collecting it fully or on time has significantly decreased. Common signs include customers experiencing prolonged overdue payments, repeatedly breaking promises, disputes arising, inability to pay, or legal issues that make recovery difficult.<\/p>\n<p>It is necessary to distinguish between the three states because the treatment methods are different:<\/p>\n<div class=\"bizzi-table-wrap\" tabindex=\"0\" role=\"region\" aria-label=\"Distinguish between different types of accounts payable.\">\n<table>\n<thead>\n<tr>\n<th>Status<\/th>\n<th>Simply put<\/th>\n<th>Things that should be done<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Overdue debt<\/td>\n<td>The payment deadline has passed, but the full payment has not been made.<\/td>\n<td>Verify accounts, send payment reminders, identify the cause of the debt, and establish a payment schedule.<\/td>\n<\/tr>\n<tr>\n<td>Uncollectible accounts receivable<\/td>\n<td>The potential for recovery has decreased and there are clearer signs of risk.<\/td>\n<td>Continue the recall process; assess contingency conditions and legal options.<\/td>\n<\/tr>\n<tr>\n<td>Uncollectible debt<\/td>\n<td>There is evidence to suggest that the receivable falls under the category of losses that can be treated as a result of the regulations.<\/td>\n<td>Prepare documentation, request a decision from the competent authority, and account for the transaction in accordance with regulations.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>If your business needs a broader perspective, from recording accounts receivable and tracking payment deadlines to reconciliation and collection, see our additional guidance on... <a href=\"https:\/\/bizzi.vn\/quan-ly-cong-no-la-gi-giai-phap-quan-ly-cong-no-hieu-qua-cho-doanh-nghiep\/\">managing accounts receivable<\/a>. This article focuses only on the stage where accounts receivable show signs of being difficult to collect and the next steps to take.<\/p>\n<p>One point that is easily confused is the marker. <strong>Overdue by 6 months<\/strong> The provision for doubtful debts in the regulations is not the only definition of &quot;bad debts&quot; in management. It is one of the important conditions for determining the provision level for overdue receivables according to Circular 48\/2019\/TT-BTC, along with relevant documentation and evidence.<\/p>\n<\/section>\n<section id=\"cach-xu-ly-no-kho-doi-theo-5-buoc\" class=\"template-section\">\n<h2><span class=\"ez-toc-section\" id=\"Cach_xu_ly_no_kho_doi_theo_5_buoc\"><\/span>How to handle bad debts in 5 steps<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Once a risky receivable has been identified, it&#039;s crucial to avoid having the sales, accounting, and legal departments handle it in a fragmented manner. Businesses should create a unified record for each receivable and follow the steps below.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_1_Doi_chieu_va_xac_minh_chinh_xac_khoan_phai_thu\"><\/span>Step 1: Compare and verify the accounts receivable accurately.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Before submitting a stronger payment request or proceeding to accounting, review all supporting documents for the receivable: contract and appendices, invoices, delivery or acceptance records, due date, amount paid, remaining balance, and any dispute communications.<\/p>\n<p>If the figures between the two parties don&#039;t match, the first step is to reconfirm the balance. Bizzi is available. <a href=\"https:\/\/bizzi.vn\/tai-lieu\/mau-bien-ban-doi-chieu-cong-no\/\">debt reconciliation form<\/a> For businesses to refer to when they need to standardize this step.<\/p>\n<p><!-- Editorial QA before publish: preview this reused original image in WordPress and confirm all UI\/text shown in the image is still current. --><\/p>\n<figure class=\"bizzi-content-image\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/doi-soat-cong-no-hieu-qua.jpg\" alt=\"Reconciling accounts receivable using the Bizzi accounts receivable management solution.\" width=\"1600\" height=\"980\" title=\"\"><figcaption>Reconciling balances, invoices, and payments helps businesses accurately identify accounts receivable before moving on to collection or accounting processing steps.<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_2_Nhac_no_va_thuong_luong_phuong_an_thanh_toan\"><\/span>Step 2: Remind the debtor and negotiate a payment plan.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For new overdue debts or when customers remain cooperative, the goal should be to bring the receivable back to a specific payment schedule. Businesses can make phone calls, send emails, or write to the customer, but the content should clearly state the amount, the basis for the overdue debt, the due date, and the requested response timeframe.<\/p>\n<p>If the client is experiencing temporary difficulties, both parties may consider a phased payment schedule, extension, or other options that are consistent with the contract and the interests of the businesses. New commitments should be in writing to avoid continued reliance on verbal agreements.<\/p>\n<p>If you need a template and instructions on how to organize each stage of reminders\u2014pre-determining, due date, and overdue date\u2014see the guide. <a href=\"https:\/\/bizzi.vn\/huong-dan-thong-bao-nhac-no-khach-hang\/\">customer debt reminder notice<\/a>. If your goal is to build a complete collection process for multiple customer groups, rather than just handling a single bad debt, see more. <a href=\"https:\/\/bizzi.vn\/thu-hoi-cong-no-la-gi-quy-trinh-thu-hoi-cong-no-hieu-qua-cho-doanh-nghiep\/\">corporate debt recovery process<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_3_Phan_loai_rui_ro_va_trich_lap_du_phong_khi_du_dieu_kien\"><\/span>Step 3: Classify risks and make provisions when eligible.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Setting aside provisions is not a way to &quot;collect debts,&quot; but rather a way for businesses to reflect the risk of loss on receivables in their financial statements and handle them according to current regulations. Therefore, the recovery process continues even after the business has set aside provisions.<\/p>\n<p>For overdue receivables, businesses need to determine the age of the debt based on the original payment term and examine supporting documentation. For receivables that are not yet due but the debtor shows signs of being unlikely to pay on time, the assessment must be based on concrete evidence, not just subjective judgment.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_4_Can_nhac_bien_phap_phap_ly_truoc_khi_het_thoi_hieu\"><\/span>Step 4: Consider legal options before the statute of limitations expires.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If repeated debt collection and negotiations are unsuccessful, businesses should review the contract, dispute resolution clauses, transaction evidence, and statute of limitations before deciding to file a lawsuit or use arbitration if applicable.<\/p>\n<aside class=\"bizzi-callout-warning\" aria-label=\"Note regarding the time limit\"><strong>It should not be assumed that all contractual debts have the same statute of limitations.<\/strong> Commercial disputes may be subject to a two-year statute of limitations. <a href=\"https:\/\/vbpl.vn\/TW\/Pages\/vbpq-toanvan.aspx?ItemID=26117\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Article 319 of the Commercial Law<\/a>; Contract disputes falling within the scope of the Civil Code have a statute of limitations of 3 years. <a href=\"https:\/\/vbpl.vn\/TW\/Pages\/ivbpq-toanvan.aspx?ItemID=95942\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Article 429 of the 2015 Civil Code<\/a>. The specific relationship needs to be defined before application.<\/p>\n<\/aside>\n<p>The Civil Code also stipulates several cases where the statute of limitations for filing a lawsuit restarts, such as when the obligated party acknowledges part or all of the obligation, performs part of the obligation, or the two parties reach a settlement through mediation. Therefore, debt acknowledgment records, new payment schedules, and partial payment documents should be fully preserved.<\/p>\n<p>Businesses also need to avoid an outdated approach: <strong>Hiring a &quot;debt collection company&quot; as an independent service industry.<\/strong>. According to point h, clause 1, Article 6 <a href=\"https:\/\/vanban.chinhphu.vn\/?docid=216524&amp;pageid=27160\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Law on Investment 143\/2025\/QH15<\/a>, Debt collection services are a prohibited business activity. When professional support is needed, businesses should utilize appropriate legal channels such as consulting lawyers, authorized representatives, arbitration, or the courts, depending on the circumstances.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_5_Xu_ly_tai_chinh_hoac_xoa_so_khi_khoan_no_du_dieu_kien\"><\/span>Step 5: Financial settlement or debt write-off when eligible.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Only when the receivable is determined to be uncollectible and the business has sufficient documentation and an authorized decision, will the accountant proceed with handling the debt according to regulations. This should be separate from the provision for doubtful debts.<\/p>\n<aside class=\"bizzi-callout\" aria-label=\"Distinguishing between provisions and write-offs.\"><strong>Setting aside a provision for account 100% does not mean the debt will be written off immediately.<\/strong> Provisions reflect the risk of loss; writing off receivables is a separate processing step, requiring specific conditions, documentation, and authority. In some cases, a debt that has been fully provisioned for but remains uncollectible after the stipulated time may be subject to write-off; other cases include the debtor&#039;s bankruptcy, dissolution, or other corresponding legal grounds.<\/p>\n<\/aside>\n<\/section>\n<section id=\"trich-lap-du-phong-no-phai-thu-kho-doi\" class=\"template-section\">\n<h2><span class=\"ez-toc-section\" id=\"Khi_nao_duoc_trich_lap_du_phong_no_phai_thu_kho_doi\"><\/span>When can provisions for doubtful receivables be made?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to <a href=\"https:\/\/vbpl.vn\/TW\/Pages\/vbpq-thuoctinh-hopnhat.aspx?ItemID=157334\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Circular 48\/2019\/TT-BTC has been amended and supplemented.<\/a> According to Circular 24\/2022\/TT-BTC, businesses need to provide documentation proving accounts receivable and the basis for determining risk. For the category of overdue debts, the provision level is determined based on the age of the debt as follows:<\/p>\n<div class=\"bizzi-table-wrap\" tabindex=\"0\" role=\"region\" aria-label=\"Provision for doubtful receivables\">\n<table>\n<thead>\n<tr>\n<th>Overdue<\/th>\n<th>Provisioning level<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>From 6 months to less than 1 year<\/td>\n<td><strong>30%<\/strong><\/td>\n<\/tr>\n<tr>\n<td>From 1 year to less than 2 years<\/td>\n<td><strong>50%<\/strong><\/td>\n<\/tr>\n<tr>\n<td>From 2 years to less than 3 years<\/td>\n<td><strong>70%<\/strong><\/td>\n<\/tr>\n<tr>\n<td>From 3 years or more<\/td>\n<td><strong>100%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>In cases where accounts receivable are not yet due but there is evidence suggesting the debtor is unlikely to make full and timely payment, the business assesses the expected loss based on actual records. However, certain accounts receivable from telecommunications and retail businesses, whether in the form of deferred or installment payments to individuals, have a separate aging schedule as stipulated in Circular 48; the above table should not be applied mechanically to this group.<\/p>\n<p>The documentation should be prepared according to the nature of the debt, usually including original documents establishing the receivable, reconciliation or payment collection documents, detailed statements, and documents proving the debtor&#039;s status.<\/p>\n<\/section>\n<section id=\"tai-khoan-no-kho-doi\" class=\"template-section\">\n<h2><span class=\"ez-toc-section\" id=\"No_kho_doi_hach_toan_vao_tai_khoan_nao\"><\/span>Which account should bad debts be recorded in?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This is a point that can easily lead to confusion. <strong>Account 2293 is not an account containing the principal amount of accounts receivable.<\/strong> Accounts receivable are still reflected in the account appropriate to the nature of the transaction, such as Account 131 \u2013 Accounts Receivable from Customers or Account 138 in the corresponding case. Account 2293 is used to reflect <strong>provision for doubtful receivables<\/strong>.<\/p>\n<p>For fiscal years beginning on or after January 1, 2026, businesses will apply the following accounting system: <a href=\"https:\/\/www.mof.gov.vn\/tin-tuc-tai-chinh\/tin-chinh-sach-tai-chinh\/tap-huan-trien-khai-thong-tu-so-992025tt-btc\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Circular 99\/2025\/TT-BTC<\/a>. When the required reserve amount for this period is greater than the remaining reserve amount, the additional amount is recorded as follows:<\/p>\n<div class=\"bizzi-entry\" aria-label=\"Journal entry for provision for doubtful debts\">\n<p><strong>Debit account 642 \u2013 Business management expenses<\/strong><strong>Account 2293 \u2013 Provision for doubtful receivables.<\/strong><\/p>\n<\/div>\n<p>If the provision required for this period is lower than the amount previously set aside and not fully utilized, the difference is reversed.<\/p>\n<div class=\"bizzi-entry\" aria-label=\"Reversal entry for provision\">\n<p><strong>Debit account 2293<\/strong><strong>There is account number 642.<\/strong><\/p>\n<\/div>\n<p>Circular 99\/2025\/TT-BTC has replaced Circular 200\/2014\/TT-BTC regarding the accounting regime for enterprises from the fiscal year beginning on or after January 1, 2026. Therefore, enterprises should not continue to use the old guidelines as the basis for current accounting for the 2026 fiscal year. The journal entries in this section are guidance on... <strong>accounting records<\/strong>; Whether an expense is deductible when determining tax liability depends on a comparison with tax regulations and actual records.<\/p>\n<\/section>\n<section id=\"khi-nao-duoc-xoa-no-phai-thu-kho-doi\" class=\"template-section\">\n<h2><span class=\"ez-toc-section\" id=\"Khi_nao_duoc_xoa_no_phai_thu_kho_doi\"><\/span>When can uncollectible accounts receivable be written off?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Writing off accounts receivable is a process for dealing with debts deemed uncollectible, not a way to &quot;clean up&quot; accounts receivable when new customers are late in payment. Depending on the case, the basis may relate to the bankruptcy, dissolution, or cessation of operations of the debtor organization; the legal status of the individual debtor; or the fact that sufficient provisions have been made but the debt remains uncollectible after the prescribed period.<\/p>\n<p>If businesses consider handling based on the provisioning timeline, Circular 48 stipulates that for the group of ordinary accounts receivable: debts that have been fully provisioned for but after 100% <strong>3 years from the time the full amount of 100% was deducted.<\/strong> Unrecovered debts may fall under the category of uncollectible debts and be considered for processing. This is not the only condition; bankruptcy, dissolution, or other legal statuses of the debtor may create other grounds and must be proven with corresponding documentation.<\/p>\n<p>Therefore, when assessing a debt for write-off, the correct question is not simply &quot;how long has the debt been overdue?&quot;, but rather:<\/p>\n<ul>\n<li>Does the receivable have sufficient legal basis for its existence?<\/li>\n<li>Has the company carried out and retained evidence of the recall and verification?<\/li>\n<li>Which type of debt is considered uncollectible?<\/li>\n<li>Is there documentation proving the debtor&#039;s status?<\/li>\n<li>Has the matter been decided upon by an authorized person or authority within the company?<\/li>\n<\/ul>\n<\/section>\n<section id=\"ho-so-xoa-no-phai-thu-kho-doi\" class=\"template-section\">\n<h2><span class=\"ez-toc-section\" id=\"Ho_so_xoa_no_phai_thu_kho_doi_gom_nhung_gi\"><\/span>What documents are required to write off bad debts?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The actual documentation required depends on the reason for the debt non-recovery. However, businesses should prepare documents in four groups:<\/p>\n<ol>\n<li><strong>Records for creating and tracking accounts receivable:<\/strong> Contracts, invoices, delivery or acceptance documents, accounts payable ledger, reconciliation statements, and partial payment documents, if any.<\/li>\n<li><strong>Debt recovery file:<\/strong> Letters\/emails\/official documents requesting payment, confirmation of delivery and receipt, meeting minutes, debt repayment commitments, payment schedules, and related evidence.<\/li>\n<li><strong>Documentation proving the debt is uncollectible:<\/strong> Documents relating to bankruptcy, dissolution, cessation of operations, or other legal documents appropriate to each case; if processing is based on the time of provision allocation, supporting documents proving the allocation process are required.<\/li>\n<li><strong>Decision on handling the case file:<\/strong> Minutes of the debt resolution committee or corresponding internal records, a detailed list of the amounts processed, and the decision of the competent person\/agency.<\/li>\n<\/ol>\n<p>The authority to decide on handling the matter depends on the business model and governance structure. Circular 48 stipulates that handling is based on minutes and supporting documents, with a decision made by the competent authority\/person such as the Board of Directors, Board of Members, Chairman of the company, General Director\/Director, owner of a private enterprise or owner of an economic organization, depending on the applicable case.<\/p>\n<\/section>\n<section id=\"hach-toan-xoa-no-phai-thu-kho-doi\" class=\"template-section\">\n<h2><span class=\"ez-toc-section\" id=\"Hach_toan_xoa_no_phai_thu_kho_doi_theo_Thong_tu_99\"><\/span>Accounting for the write-off of uncollectible accounts receivable according to Circular 99.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When a receivable has been decided to be written off in accordance with the proper documentation and authority, Circular 99 instructs accountants to use the established provision, any compensation, and the remaining amount to be included in expenses as prescribed to handle the outstanding receivable balance.<\/p>\n<div class=\"bizzi-entry\" aria-label=\"Journal entry for writing off doubtful receivables.\">\n<p><strong>Debit accounts 111, 112, 331, 334\u2026<\/strong> \u2013 the portion that the organization\/individual must compensate, if any.<\/p>\n<p><strong>Debit account 2293<\/strong> \u2013 the reserve fund has been established<\/p>\n<p><strong>Debit account 642<\/strong> \u2013 the remainder is included in the cost.<\/p>\n<p><strong>There are accounts 131, 138\u2026<\/strong> \u2013 accounts receivable processed<\/p>\n<\/div>\n<p>After writing off a debt, the business must still maintain detailed records to track the written-off debt as required by regulations. According to Circular 48, uncollectible debts, after being written off, must still be monitored in the management system and financial statement disclosures for a minimum period. <strong>10 years<\/strong>, Meanwhile, the company continues to implement appropriate recall measures.<\/p>\n<p>If the written-off debt is later recovered, the actual amount recovered is recorded as follows:<\/p>\n<div class=\"bizzi-entry\" aria-label=\"Accounting entry for recovering written-off debt\">\n<p><strong>Debit accounts 111, 112\u2026<\/strong><strong>There is account 711 \u2013 Other income.<\/strong><\/p>\n<\/div>\n<aside class=\"bizzi-callout\" aria-label=\"The meaning of eradication\"><strong>Removing something from the accounting records does not mean abandoning the right to recover it.<\/strong> This is why businesses must continue to monitor written-off debts and record them again when the money is actually collected.<\/p>\n<\/aside>\n<\/section>\n<section id=\"han-che-no-kho-doi\" class=\"template-section\">\n<h2><span class=\"ez-toc-section\" id=\"Lam_sao_han_che_no_kho_doi_phat_sinh_lai\"><\/span>How can we limit the recurrence of bad debts?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bad debts don&#039;t usually appear suddenly. There are often warning signs beforehand, such as unconfirmed invoices approaching due, customers repeatedly requesting extensions, increasing debt age, or discrepancies in the outstanding balance between the two parties. Therefore, the most effective prevention is to monitor the situation from the moment credit is granted until the money actually arrives in the account.<\/p>\n<ul>\n<li><strong>Set credit limits and terms:<\/strong> Customer classification, clearly defined terms, exception approval, and follow-up responsibilities.<\/li>\n<li><strong>Tracking debt aging:<\/strong> Don&#039;t just look at the total amount of receivables; you need to know which ones are 0\u201330, 31\u201360, 61\u201390 days overdue, or longer.<\/li>\n<li><strong>A reminder before the deadline:<\/strong> Don&#039;t wait until a customer is long overdue before contacting them.<\/li>\n<li><strong>Periodic reconciliation:<\/strong> Address discrepancies in invoices, payments, or documents immediately upon detection.<\/li>\n<li><strong>Measuring revenue collection effectiveness:<\/strong> monitor <a href=\"https:\/\/bizzi.vn\/dso-la-gi\/\">DSO<\/a> Using debt aging reports helps identify trends in delayed payments before overdue balances accumulate into bad debts.<\/li>\n<\/ul>\n<p><!-- Editorial QA before publish: preview this reused original image in WordPress and confirm all UI\/text shown in the image is still current. --><\/p>\n<figure class=\"bizzi-content-image\"><img decoding=\"async\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-file-theo-doi-cong-no-4.png\" alt=\"Track accounts receivable and aging on Bizzi&#039;s accounts receivable management solution.\" width=\"2560\" height=\"1568\" title=\"\"><figcaption>Tracking the status and aging of accounts receivable helps businesses detect potentially overdue debts early, rather than only addressing them when they become bad debts.<\/figcaption><\/figure>\n<\/section>\n<section id=\"bizzi-arm-quan-ly-cong-no-qua-han\" class=\"template-section\">\n<h2><span class=\"ez-toc-section\" id=\"Bizzi_ARM_ho_tro_quan_ly_cong_no_qua_han_nhu_the_nao\"><\/span>How does Bizzi ARM help manage overdue accounts receivable?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As the number of customers and invoices increases, tracking using separate files can easily lead to teams missing overdue payments, inconsistent debt reminders, or wasting time on payment reconciliation. This is where technology can directly support the accounts receivable management process.<\/p>\n<p>Bizzi ARM focuses on operations directly related to accounts receivable: tracking accounts receivable by customer and payment status, alerting about due or overdue amounts, monitoring DSOs and reporting aging, reconciling payments, and supporting the organization of a debt reminder workflow.<\/p>\n<p>The system&#039;s role is not to replace legal assessment or debt forgiveness decisions. Its main value lies in helping businesses. <strong>This allows for earlier detection of potentially overdue accounts, standardization of tracking evidence, and reduction of manual steps in the reminder-reconciliation-reporting process.<\/strong>.<\/p>\n<aside class=\"bizzi-commercial-bridge bizzi-cta\" aria-label=\"Learn about Bizzi&#039;s debt management solution.\"><strong>If your business is tracking multiple accounts receivable and wants to standardize the process of debt reminders, reconciliation, and aging reporting, you might want to learn more about Bizzi ARM.<\/strong><a class=\"bizzi-button\" href=\"https:\/\/bizzi.vn\/quan-ly-cong-no\/\">Learn about Bizzi&#039;s debt management solution.<\/a><\/p>\n<\/aside>\n<\/section>\n<section id=\"faq\" class=\"template-section\">\n<h2><span class=\"ez-toc-section\" id=\"Cac_cau_hoi_thuong_gap_ve_no_kho_doi\"><\/span>Frequently Asked Questions about Bad Debt<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<details>\n<summary>What are uncollectible accounts receivable?<\/summary>\n<div>\n<p>These are accounts receivable where the likelihood of full or timely collection has significantly decreased. In accounting and taxation, the creation of provisions must also meet prescribed conditions and documentation, and not simply be based on the subjective assessment that the customer is &quot;unlikely to pay.&quot;.<\/p>\n<\/div>\n<\/details>\n<details>\n<summary>How long does a loan have to be overdue before a provision for bad debts can be made?<\/summary>\n<div>\n<p>For the group of overdue receivables under Circular 48, the provision for overdue receivables is 30% for amounts from 6 months to less than 1 year; 50% for amounts from 1 to less than 2 years; 70% for amounts from 2 to less than 3 years; and 100% for amounts from 3 years or more, provided that the relevant documentation and evidence are met. Some specific types of receivables have their own separate provision limits.<\/p>\n<\/div>\n<\/details>\n<details>\n<summary>What is considered a bad debt account?<\/summary>\n<div>\n<p>The principal receivable remains in the account according to the nature of the transaction, such as Account 131 or Account 138. Account 2293 is a provision for doubtful receivables, not an account to replace the principal receivable.<\/p>\n<\/div>\n<\/details>\n<details>\n<summary>Can the provision for account 100% be written off immediately?<\/summary>\n<div>\n<p>No. Setting aside a provision under account 100% and writing off accounts receivable are two different steps. Writing off accounts receivable is only done when the debt is deemed uncollectible according to regulations, with sufficient documentation and a decision from the competent person\/agency.<\/p>\n<\/div>\n<\/details>\n<details>\n<summary>What documents are required to write off bad debts?<\/summary>\n<div>\n<p>Depending on the cause, the file typically includes documents proving the receivable, reconciliation and recovery documents, evidence of uncollectibility, documents on the provision process (if any), handling records, and competent decisions.<\/p>\n<\/div>\n<\/details>\n<details>\n<summary>How should the accounting be done if a debt is written off and then the money is recovered?<\/summary>\n<div>\n<p>According to Circular 99, when recovering a debt that has been written off, the enterprise debits accounts 111, 112\u2026 and credits account 711 \u2013 Other income, based on the actual recovered value.<\/p>\n<\/div>\n<\/details>\n<details>\n<summary>Can businesses hire debt collection companies?<\/summary>\n<div>\n<p>Debt collection services are prohibited from investment and business activities according to Law 143\/2025\/QH15 on Investment. Businesses should use internal recovery methods and appropriate legal channels such as legal advice, arbitration, or the courts, depending on the case, instead of hiring debt collection services as an independent business activity.<\/p>\n<\/div>\n<\/details>\n<\/section>\n<aside class=\"bizzi-callout\" aria-label=\"Notes on application\"><strong>Notes on application:<\/strong> The conditions for provisioning, accounting treatment, statute of limitations, and legal options may vary depending on the type of transaction, documentation, and the debtor&#039;s status. For large debts, those under dispute, or those nearing the expiration of the statute of limitations, businesses should review the documentation with their legal department, accounting department, or appropriate expert before making a decision.<\/p>\n<\/aside>\n<section id=\"ket-luan\" class=\"template-section\">\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span>Conclude<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Effective handling of bad debts doesn&#039;t begin with writing them off, but rather with accurately identifying the receivables and acting early enough. Businesses need to cross-check records, organize debt reminders and negotiations with evidence, assess the conditions for write-offs, protect legal rights, and only write off debts when they truly meet the criteria.<\/p>\n<p>If accounts receivable are tracked by age, due date, and payment status from the outset, the finance team has a much greater chance of addressing the issue before the receivable becomes bad debt. This is also where a systematic accounts receivable management process delivers the greatest value to a company&#039;s cash flow.<\/p>\n<\/section>\n<\/article>\n<\/p>","protected":false},"excerpt":{"rendered":"<p>Khi m\u1ed9t kho\u1ea3n ph\u1ea3i thu \u0111\u00e3 qu\u00e1 h\u1ea1n ho\u1eb7c xu\u1ea5t hi\u1ec7n d\u1ea5u hi\u1ec7u kh\u00f3 thu h\u1ed3i, doanh nghi\u1ec7p kh\u00f4ng n\u00ean v\u1ed9i x\u00f3a n\u1ee3 kh\u1ecfi s\u1ed5&#8230;<\/p>","protected":false},"author":57,"featured_media":999976272,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[368],"tags":[],"class_list":["post-999976271","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-quy-trinh-phai-thu"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999976271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999976271"}],"version-history":[{"count":10,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999976271\/revisions"}],"predecessor-version":[{"id":999982184,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999976271\/revisions\/999982184"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999976272"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999976271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999976271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999976271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}