Overview

This process manages rare and complex outstanding AR/AP cases to be cleared between two or more parties.

The offset scheme often requires counterparty confirmation before clearing transactions are posted.

Perform custom intercompany account offset flowchart

Paths

How to review opposite AR/AP amounts

1. Go to Profitability & cost → Profitability and cost reports and then click Intercompany AR/AP open items under Intercompany.

2. Click Settings to change the report structure and set filters.

3. Specify the Period.

4. Select the AR/AP object check box and click Generate.

5. Find the AR/AP object, payments, and invoices relevant to the Invoice.

6. Review the information about the accounts payable and receivable by the AR/AP object.

7. Find the amounts in the Customer receivables and Customer payable columns within the combination of group companies to find contra entries.

Paths

How to perform AR/AP clearing within single company

1. Go to Profitability & cost and then click Intercompany sales documents (all) under Intercompany.

2. Open the Customer invoice – Intercompany document and click the Main tab.

3. Click Payment offset.

4. In the Payment offset workplace, click the Other prepayments tab. The system will prepare a list of prepayments to/from the counterparty that:

• Took place before the invoice date.
• Are not connected to the Contract of the AR/AP object.
• Have a different AR/AP object.

5. Select the By all counterparty contacts filter.

6. Select the item and click Offset/transfer advance.

7. In the Offset section below, correct the amount for the list of documents.

8. Click Offset to create the AR/AP offset document that clears the payment document amount against the AR/AP object amount.

Paths

How to perform AR/AP clearing for multiple legal entities

1. Go to Treasury and then click AR/AP offset under AR/AP offset.

2. Create the AR/AP offset document.

3. Open the Transaction field.

4. In the Offset setup wizard, select the Arbitrary offset in the Transaction section and click Apply.

5. In the AR/AP offset document, select the customer company or vendor company in the Debtor field.

6. Select the customer company or vendor company in the Creditor field.

7. Choose the AR/AP object.

8. Click the Accounts receivable tab.

9. Fill all the necessary fields.

10. Click the Accounts payable tab.

11. Fill all the necessary fields.

Paths

How to update and confirm payment requests