> ## Documentation Index
> Fetch the complete documentation index at: https://docs.encoreos.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Bad Debt Reserves

> Track and manage allowance for doubtful accounts with reserve calculations and write-off tracking.

Track and manage allowance for doubtful accounts with reserve calculations and write-off tracking at the in-app route `/fa/bad-debt-reserves`.

## Overview

This screen displays a summary of bad debt reserves and a table of all reserve records for the organization. Three summary cards show Current Reserve Balance (with last calculated date), Total Written Off YTD, and Reserve Utilization percentage. The data table shows reserve date, amount, method badge (`Percentage of Sales`, `Aging Analysis`, `Specific Identification`), linked journal entry (or "—"), and notes. A "Calculate Reserve" button opens the `CreateBadDebtReserveDialog` to create a new reserve entry.

## Who it's for

Required permission: `fa.bad_debt.view` (enforced at the route via `RequirePermission`).

## Before you start

* An organization must be selected.
* AR invoices and customer data should exist to support reserve calculations.

## Steps

<Steps>
  <Step title="Navigate to Bad Debt Reserves">Go to `/fa/bad-debt-reserves` via Finance & Revenue.</Step>
  <Step title="Review summary cards">Check Current Reserve Balance, Total Written Off YTD, and Reserve Utilization.</Step>
  <Step title="Review reserve history">The table lists past reserve entries with dates, amounts, methods, and linked journal entries.</Step>
  <Step title="Calculate a new reserve">Click "Calculate Reserve" to open the dialog and create a new reserve record.</Step>
</Steps>

## Key concepts

* `reserve_method` values: `percentage_of_sales`, `aging_analysis`, `specific_identification`
* `currentReserveBalance` — current total reserve balance from `useBadDebtSummary`
* `totalWrittenOffYTD` — year-to-date write-off total
* `reserveUtilization` — percentage of the current reserve that has been used

## Related

<Columns cols={2}>
  <Card title="Finance & Revenue" icon="building-columns" href="/fa/overview">
    Finance & Revenue core overview.
  </Card>

  <Card title="Governance & parity" icon="scale-balanced" href="/governance/index">
    Documentation coverage and governance.
  </Card>
</Columns>

<Note>
  This page documents shipped product behavior. It is not medical, legal, or
  billing advice. Verify against your organization's policies and applicable
  regulations before using it for clinical, compliance, or billing decisions.
  Protected health information (PHI) shown in the product is governed by your
  tenant's access controls and is never exposed in this documentation.
</Note>

<Accordion title="Documentation sources">
  * src/routes/fa.tsx
  * src/cores/fa/pages/BadDebtReservesPage.tsx
  * src/cores/fa/hooks/useBadDebtReserves.ts
</Accordion>