Exclude Allowance for Doubtful Accounts on the A/R Aging Report while maintaining proper Balance Sheet presentation with the Allowance for Doubtful Accounts netted against the Accounts Receivable

 

To resolve:

1.    Changing the account type is not possible (This is logged under Enhancement 22411 - for the Account Type to be editable). The workaround is to inactivate the account then create a new one with the correct type.
-- Edit the Allowance for Doubtful Account > Mark the Inactive box > Save.
-- Create a new account and make sure all the postings to the inactivated account are transferred to the new account. It could be done by going to the old account's register and editing the journal entries.
-- Assign a different account type for the new account (Other Current Asset perhaps).
-- Note that you cannot use the same account number and account name.

 2. Customize the Balance Sheet layout for proper presentation.
-- Reports > Financial > Balance Sheet > Customize > Edit Layout
-- Other Current Asset > Edit Criteria > Account Name = none of Allowance for Doubtful Accounts
-- Add Financial Section > Header Label: Allowance for Doubtful Accounts > Section: Account Name = Allowance for Doubtful Accounts > Format: Account Row Format: Reverse Sign=checked.
-- Create a Header and Summary Rows > Header Label: Net Accounts Receivable > Summary Label: Net Accounts Receivables.
-- Change the Child Of field of the Accounts Receivable and Allowance for Doubtful Accounts to Net Accounts Receivable.
-- Rename the custom Balance Sheet.
-- Save. This custom report will be available under Saved Reports.

3. If you want to set a custom layout as your default layout, follow these steps:

-- Navigate  to Reports > Financial > Row Layout Assignment.

-- Click Inline Editing (found after the title Financial Reports : Row Layout Assignment).

-- At the bottom of the report, change Report Type to Balance Sheet

-- Locate for the Standard Balance Sheet (It is the one named Balance Sheet and has the Customize link). 

-- Click the Row Layout next to the Balance Sheet.  It should be a drop-down now.

-- Select the Custom Balance Sheet layout that you saved.

-- Click anywhere outside the drop-down to reflect the change.

-- Turn off Inline Editing.