Supplier Offset Proposal
Description of Supplier Offset process
This process is used to offset supplier open invoice/prepayment items with positive balances
against supplier open invoice/prepayment items with negative balances using an offset proposal.
An offset proposal may be created online or as a background job.
Suppliers to be included in an offset proposal are specified by selecting a range of
supplier 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 supplier 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 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 supplier 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 supplier 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 search through the credit items to find a match within the
allowed difference amount. The system will then takes 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, PO Reference, Payment 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 amount. The system will compare each item with the
allowed difference amount. All items within the 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 suppliers.
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 the Supplier Check page, through the
command Offset in order to match and settle Payments on Account created from Supplier Checks, with
existing open ledger items. Upon executing the said command, the user will be directed to the Supplier
Offset Proposals page. Newly created Supplier Offset Proposal populates and becomes visible upon
navigation from the Supplier Check page. In Supplier Offset Items, the system loads
the Payment on Account ledger item generated from the Supplier 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.