Definition
This process manages rare and complex cases of outstanding AR/AP to be cleared between 2 or more parties.
It is often needed to confirm the offset scheme with the counterparty before posting clearing transactions.
Business process diagram
How to review opposite AR/AP amounts
How to perform AR/AP clearing within single company
Go to the Customer invoice - Intercompany document, go to the Main tab.
Click Payment offset.
In the Offset payments: workplace, go to the Other prepayments tab.
The system will prepare the list of prepayments to/from the counterparty that:
- Took place before the invoice date.
- Aren't connected to the Contract of the AR/AP object.
- Have a different AR/AP object.
Select the By all counterparty contacts filter.
Select the item and click Set-off /Transfer advance.
Correct the amount for the list of documents in the Set-off section (below).
Click Execute to create the AR/AP offset document that clears the amount of the payment document against the amount of the AR/AP object.
How to perform AR/AP clearing for multiple legal entities
Go to AR/AP offset list.
Create the AR/AP offset document.
Open the Transaction field.
In the Offsetting setup wizard:
Select the Arbitrary offset in the Transaction section, click Apply.
In the AR/AP offset document
Select the Customer company or Vendor company in the Debtor field.
Select the Customer company or Vendor company in the Creditor field.
Choose the AR/AP object.
Go to the Accounts receivable tab.
Fill in all the necessary fields.
Go to the Accounts payables tab.
Fill in all the necessary fields.
How to update and confirm payment request