Compensations in Business

Do some of your customers have both outstanding invoices and credit memos, or do you deal with companies that are both customers and suppliers? You might be interested in the Compensations feature.

This command appears in the Action menu only when the current file is the Addresses file. The dialog box that appears offers four options. If more than one option is selected, the processing will be performed in the order in which they appear, for each of the selected addresses.

Pay the invoices with the credit notes

This process involves offsetting customer invoices against customer credit memos that have an available balance. The documents are processed in chronological order, starting with the oldest ones.
At the end of the process, there may still be one or more invoices, or one or more credit memos, that still have a positive balance. The payment records generated will be of Type CN.

The same process is then applied to the creditor documents.

Use the avances

This process involves settling customer invoices with the advance payments made by customers. Invoices are processed in chronological order, starting with the oldest ones. At the end of the process, there may be one or more invoices that still have a positive balance, or a remaining advance amount. The payment records generated will be of Type RA.

The same process is then performed with the accounts payable documents. The generated payment records will be of Type RA.

Carry out the cross compensations

This process involves comparing accounts receivable and accounts payable with positive balances, and offsetting the former against the latter until either the accounts receivable or the accounts payable are fully settled (depending on the outstanding amounts). The documents are processed in chronological order, starting with the oldest ones.

When an offset is possible, Office Maker Business generates a Debit Payment record to settle all or part of the debit invoice. In this Payment record, the debit invoice number is entered in the Invoice No. field, while the serial number of the credit invoice used for the offset is recorded in the Document No. field for reference. In addition, the Remarks field will contain the following note: “Offset of customer invoice No. XXXX by vendor invoice serial No. XXXX.”

At the same time, the program also generates a Creditor Payment record (for the exact same amount) to settle all or part of the vendor invoice used for the offset. In this Payment record, the vendor invoice number is entered in the Invoice No. field, while the customer invoice number is retained in the Document No. field for reference.

The program then performs the same process to offset customer credit memos against vendor credit memos.

All payment records generated by these transactions are identified by the CO type.

Deleting a paiement of type CO

Deleting a debit (or credit) payment of Type CO (offset) results in the deletion of the corresponding credit (or debit) payment and the recalculation of the balances of the affected documents.

ISO

Type CO (settlement) payments are, of course, ignored when you perform an ISO export.

Cross compensation of the advances

With this option, the program compares the total of the amounts paid to you as advances with the total of the amounts you have advanced yourself for the same address record. The program will then clear one of the two counters by generating a Debit Payment record of Type RA, and simultaneously a Credit Payment record of Type RA, for an identical amount. The amount in question is the one that cleared the debit or credit advance counter to zero.

The No. of Items field in these Payment records will display “CO”. The VAT code assigned by default to the generated records will be the one specified in the Options for Debit and Credit Payment files, respectively.

Accounting

In the Preparation for accounting Options, you can enter an account number in the Transfer Account field. This number will be carried over to the Account No. field in CO-type (offset) payment records and in those generated by cross-offset of advances.