Customer Offset Proposal
Description of Customer Offset process
This process is used to offset customer open invoice/prepayment items with positive balances against customer
open invoice/prepayment items with negative balances using an offset proposal.
An offset proposal may be created online or as a background job.
Customers to be included in an offset proposal are specified by selecting a range of customer IDs. You can
select only one currency at a time and all open invoices/prepayments (except advance invoices) that are authorized
for payment in that currency are considered for the selection. It is also possible to allow open items of any
ledger status to be included in the proposal or to allow only open items of a specific ledger status (i.e. either
Normal or Bad Debt) to be included. If an allowed difference is specified, an offset proposal will be
suggested only if the difference resulting from the offset is less or equal to that amount. Here, the difference is
posted as a new difference invoice item against the customer and then written off using the write off code
specified by you. (Note that you are required to specify a difference item invoice type, difference item invoice
series, debit write off code and credit write-of code and write off code if you enter an allowed difference.) If no
allowed difference is specified, the offset proposal will be created if there is no difference resulting from the
offset.
There are six possible methods in which open items can be matched against each other to create an offset
- Match All Open Items
If this matching method is selected, an offset will be suggested for an
individual customer only if the balance of all open items are within the specified allowed difference
amount. An offset proposal will be created only if at least one customer has a balance within the specified
allowed difference amount.
- Match Single Debit Item with Single Credit Item
If this matching method is selected, the system
takes the first debit item and searches through the credit items to find a match within the allowed difference
amount. The system will then take the next debit item and continue until all debit items are covered. All matched
items will be added to the offset proposal.
- Match Open Items with One or More Credit Items
If this matching method is selected, the system take
the first debit item and matches it with with one or more credit items until matched within allowed difference
amount. The system will then take the next debit item and do the same thing until all debit items are covered.
All matched items will be added to the offset proposal.
- Match Open Items with Common Invoice Reference
If this matching method is selected, a reference
type must be selected to which the items should be matched . The reference types available are Invoice
Reference, Order Reference, Customer Reference and Creators Reference. The system
matches debit items and credit items with the same reference information and within the allowed difference
amount. All matched items will be added to the offset proposal.
- Write-off Single Items
If this matching method is selected, an offset will be created if a single
item is within the allowed difference. The system will compare each item with the allowed difference amount. All
items within allowed difference will be added to the offset proposal.
- Manual
If this matching method is selected, an empty proposal will be created which is independent
from the customers. The invoices/ prepayments can be manually added in the detail level using the
Select Multiple Invoices/Prepayments page. You can select only one currency at a time
when loading a new proposal and the invoices/prepayments (except advance invoices) that are authorized for
payment in that currency are available for the selection. The payment amount can be manually modified in the
detail level in order to balance the positive items with negative items.
In addition, this matching method is directly accommodated via Customer Check page, through the
command Offset in order to match and settle Payments on Account created from Customer Checks, with
existing open ledger items. Upon executing the said command, user will be directed to the Customer Offset
Proposals page. Newly created Customer Offset Proposal populates and becomes visible upon navigation from
the Customer Check page. In Customer Offset Items, the system loads the Payment on
Account ledger item generated from the Customer Check and makes it available for offsetting against an existing
open invoice or prepayments, following standard functionality. Here, the actual difference should be equal to
zero in order to approve the offset proposal for creating the payment transactions and the voucher.
Once an offset proposal is created it can be modified, printed and approved. Approval of the offset proposal too
can be performed online or as a background job, and it results in the creation of a voucher which can be viewed in
the Voucher Details page. The default voucher date, voucher type and user group suggested by the
system in the Payment Parameters dialog at the time of approving the voucher can be changed if
required.