Definition

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

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

Business process diagram

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.

How to perform AR/AP clearing within single company

Go to the Customer invoice – Intercompany document and go to the Main tab.

Click Payment offset.

In 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.
• Are not 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 Arbitrary offset in the Transaction section and 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