Offset Payment Between Customer and Supplier

Open Accounts Receivable (AR) and Open Accounts Payable (AP) can be offset in a single Journal Entry when the Customer pays your Supplier as a means to clear their outstanding debt to your company. 

Refer to the sample scenario below.

1. Check your AR and AP Summary Reports.
   • Customer ABC owes your company RM 45,740.00 with three outstanding Sales Invoices.
   • Your company owes Supplier XYZ RM 43,400.00 with three outstanding Purchase Invoices.
2. Create a new Journal Entry to offset the Trade Debtors and Trade Creditors balances. 
   • In each row, assign the Party (Customer or Supplier) and Document No. (Sales Invoice or Purchase Invoice). The Debit/Credit Amount will be automatically set. Change the Amount accordingly.
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3. Once the Journal Entry is submitted, the Document Status of the Sales Invoice(s) and Purchase Invoice(s) will be updated (if the payment has been offset in full) and the Outstanding Amount will be reduced in the Open AR and Open AP.