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Offset balances, transfer allocations and adjust debt

Use reconciled balances and an approved basis. Distinguish offset, reallocation of an advance/debt and write-off; none is a bank payment.

Start at Treasury > AR/AP offsets; AR/AP adjustments.

Procedure​

  1. Choose AR/AP offsets for matching mutual receivables/payables or transferring an existing advance/debt between settlement objects. Select the operation matching the intended result.
  2. Select company, counterparties/roles and source/target settlement objects. Fill open balances and retain only the approved amounts.
  3. For advance/debt transfer inspect original document, currency and due date retained by the operation. Use a separate reviewed process for cross-currency adjustments.
  4. In manual offset compare both sides in settlement, statutory and management currencies. Do not alter amounts solely to force balance without an approved exchange-difference treatment.
  5. For a genuine write-off/accrual choose AR/AP adjustments, select the receivable/payable direction and fill from open balances. Retain only the approved amount and applicable due date.
  6. Select the authorized income, expense, asset or liability analytics. Review document basis and post only after approval.
  7. Regenerate counterparty balance/reconciliation and inspect old/new settlement objects. Ensure cash balances are unchanged by a noncash offset.

Check the result​

The intended old balance is reduced and the new/offset balance is recorded once, with any residual explained.

If the result differs​

Offset does not balance: compare both currencies and approved amount treatment. Source balance remains: check role and settlement object rather than repeating the offset.