APP-AR-96983 : User Write-off limit does not exist

Today when I was working on Receipts (Oracle R12.1.3) and tried to write-off receipt application shows the error 'APP-AR-96983 : User Write-off limit does not exist' as illustrated below: 

Solution

Use Receivables Responsibility.
1. Define user write-off limit 
The Navigation Path is: Setup > Transactions > Approval Limit 
Enter user limit for each currency the user is allowed to write off 

2. Define system write-off limit 
The Navigation Path is: Setup > System > System Options > 
Miscellaneous (tab)
Enter Maximum Write-off Amount

3. Define receivable activity 
The Navigation Path is: Setup > Receipts > Receivable Activities 
Enter at least one activity with the type of Receipt Write-off

Reference
184887.