Mutual offsetting of receivables and payables can also be created between different business partners, for example in the case of insurance claims. This article will show you how to do it.
If you are creating a mutual offset within a single business partner, use the procedure described here.
Creating a mutual offset
An offset between different business partners is carried out through manual processing of a mutual offset.
You can access the mutual offset creation feature via Other Agendas - Money - Mutual Offsets, or by using the quick search and entering a suitable keyword.
From the menu next to the New button, select Manual Offset.
A form will open where you fill in the movement type, offset date, partner, and optionally the currency.
To link the documents being offset, it is important to enter an Offset Number that will be the same on all records belonging to a specific offset. The individual offset items will differ by their internal number.
Selecting documents for the mutual offset
Now we proceed to selecting the documents for the mutual offset. Use the three-dot icon at the bottom of the form and choose Pay Document.
The documents available for linking to the offset are determined primarily by the movement type — income or expense — selected in the offset record.
Select the appropriate document and confirm with the Pay button.
Create the second part of the offset in the same way, this time on the expense side.
At this point the offset is complete. The offset documents will show a change in their payment status. In the links section of each individual document, you will see the specific payment used to settle it — in this case the document type will be ZAPOCET.
If the payable and receivable being offset are for different amounts, the difference remains as an unpaid portion of the offset document. The offset is applied in equal amounts on both sides.
Posting the mutual offset
The resulting offset is posted through a clearing account and the accounts receivable and accounts payable ledger accounts.
For open-item accounts such as 321 or 311, it is essential to physically match the document with the payment made via bank transfer, cash, or mutual offset, so that it is removed from the balance report representing unpaid documents as of a specific date.
Printing the mutual offset
You can verify that the offset documents are correctly linked, for example, by using the print report Agreement on Mutual Offset of Receivables. Access it via the three-dot icon at the end of each record and clicking the printer icon.
It is important to note that only offset entries sharing the same offset number are included in the print report.
Manual creation of a mutual offset for receivable write-off
If a customer has not paid their debt and it is clear they will never pay it (e.g. they are insolvent, have no assets, or the debt is statute-barred), you should perform a receivable write-off.
To write off a receivable in ABRA Flexi, you can use the mutual offset — manual creation feature.
In the first step, select and match the receivable to be written off following the procedure described above.
In the second step, post the receivable write-off to expenses. You will not be matching any document — simply enter the amount and the expense account.
The offset created in this way will reduce assets and increase expenses by the amount of the unpaid invoice.
FAQ
Is it possible to mutually offset receivables and payables in different currencies, e.g. a payable in CZK against a receivable in EUR?
Yes, use the manual mutual offset creation. First, create an offset (Expense) and match it with the payable in CZK. Then create a second offset (Income) and match it with the receivable in EUR. Make sure to enter the correct exchange rate so that the amounts match exactly.
To link these two offsets, the offset number is key — it must be the same on both records.
Why are mutual offsets from multiple partners being merged in the print report?
Offsets are merged in the print report based on the Offset No. field on the mutual offset document. If unrelated documents appear together in the print report, it is because they have the same offset number entered.