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

Go to the Customer invoice - Intercompany document.

Click the Reports → Related documents command.

In the Related documents report

Find the relevant Payment request.

Open the Payment request.

Set the Approved status.

Write any relevant comments on settlements performed in the Note field.

Post and close the payment request.