AR AP Offsetting

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Use this form to select the Accounts Receivable and Accounts Payable transactions to be offset. The form recalls and updates processed AR or AP offsets.

Reference

Enter a unique reference for the processing.

Description

Enter a description for the processing.

Customer Code

Select from the available customers. You can only select customers with AP offsetting set up. Selecting a customer populates the Customer Alpha, Customer Name, Offset Supplier Code, Supplier Alpha, and Supplier Name fields. The transactions available for offsetting also display.

Supplier Code

Select from the available suppliers. Only suppliers with AR offsetting set up is that you can select from. Selecting a supplier populates the Supplier Alpha, Supplier Name, Offset Customer Code, Customer Alpha, and Customer Name fields. The transactions available for offsetting also display.

Show Children

Select this option if children of the customer and/or supplier should also be shown.

Selected

Select this option to choose a transaction for offsetting

Offset Amount

The default value is the total available amount. The value can be changed to any amount less than the available amount

Click the Save icon to save the selections and run AR/AP offsets. This generates Accounts Receivable and Accounts Payable journals to offset the amounts between the accounts. Adjustments for foreign currency variations and Quad accounting are also generated.

When specifying an offset amount:

• The same amount is being offset in Accounts Receivable and Accounts Payable.
• Prompt payment discounts are not taken into account during offsetting.
• If AR or AP children are shown, the parent account relationship is used to display the Accounts Receivable and Accounts Payable transactions available for offsetting. The child must have offsetting enabled on their AR customer or AP supplier record.
• Customers and suppliers must be in the same company.
• The Offset suspense account set up on the General Ledger Module Control form is used during processing. This account should always have a balance of zero.

Processing

When the AR AP Offset form is saved this occurs:

• These journals are created:

  AR Journal
  Offset Suspense Account	80.00
  AR Control	(80.00)

  AP Journal
  AP Control	80.00
  Offset Suspense Account	(80.00)

• The journal narration shows the account the offset is transferred to
• The Offset suspense account should always balance to zero once the transactions are processed
• If the AR customer and AP supplier are in a foreign currency an exchange variance is generated if the local currency value of the transactions is different — for example:

  	FC	LC
  AR Invoice	100.00	120.00
  AP Invoice	100/00	130.00

  AR Journal
  Offset Suspense Account	120.00
  AR Control	(120.00)

  AP Journal
  AP Control	130.00
  Exchange Variance	(10.00)
  Offset Suspense Account	(120.00)

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