You can create mutual offsets of receivables and payables even between different business partners, for example in the case of insurance claims. This guide shows you how.
ℹ️ If you are creating a mutual offset within a single business partner, follow the procedure in the article Mutual offset.
Creating a mutual offset
An offset between different business partners is created manually. You can find the Mutual offsets module in the left menu under All modules, or more quickly by using the search in the top bar.
In the module, click the arrow next to the New button and select Offset: manual.
A form opens where you fill in the movement type, offset date, offset number, partner (Company), and, if needed, the currency. In the example, an insurance company paid for the repair of a company car directly to the auto repair shop, so we are offsetting the receivable from the insurance company against the payable to the auto repair shop.
💡 To link the offset documents together, choose an offset number that is the same on all records belonging to one offset. The individual offset records then differ by their internal number.
Enter the offset amount in the Price summary section (in the example, on the row with a zero VAT rate, because the offset itself has no VAT).
Save the offset using the Save and close button.
Selecting documents for the mutual offset
In the detail of the saved offset, click the three dots in the bottom bar and select Pay document.
The documents offered are determined mainly by the movement type of the offset: for receipts, receivables are offered; for disbursements, payables are offered. Select the appropriate document and confirm with the Pay button.
Create the second part of the offset, on the expense side, in the same way (in the example, a disbursement for the auto repair shop matched with its invoice).
The offset is now complete and the payment status of the offset documents changes. In the relations (three dots › Show relations) you will see the specific payment, in this case a document of type ZAPOCET.
💡 If you are offsetting a payable and a receivable of different amounts, the difference remains as the unpaid portion of the offset document. The offset is made in the same amount on both sides.
Posting the mutual offset
The resulting offset is posted through a clearing account and the customer and supplier accounts. In the list of offsets, you can see both records with the same offset number.
💡 For subledger accounts, such as 321 and 311, the document must actually be matched with a payment in the bank, the cash register, or a mutual offset. Only then does the document disappear from the balance report, which shows unpaid documents as of a given date.
Printing the mutual offset
You can verify that the offset documents are correctly linked, for example, in the Agreement on mutual offset of receivables print report. In the list of offsets, hover over a record, click the three dots at the end of the row, and select Print.
💡 The print report includes those mutual offset records that have the same offset number.
Manual offset when writing off a receivable
If a customer has not paid and it is clear that they will not pay (for example, they are insolvent, have no assets, or the debt has become time-barred), you perform a receivable write-off. In ABRA Flexi, you can use a manual mutual offset to write off a receivable.
Step 1: Following the procedure above, create an offset with the movement type Receipt and match it with the receivable you are writing off.
Step 2: Create a second offset with the same offset number and the movement type Disbursement. Do not match it with any document; just fill in the amount and, in the Posting section, enter an expense account as the Contra account (in the example, 546001).
An offset created this way reduces receivables (assets) and increases expenses by the amount of the unpaid invoice.
⚠️ Consult your accountant or tax advisor about how to write off a receivable and its tax implications.
FAQ
Is it possible to offset receivables and payables in different currencies, for example a payable in CZK against a receivable in EUR?
Yes, use a manual mutual offset. First, create an offset with the movement type Disbursement and match it with the payable in CZK. Then create a second offset with the movement type Receipt and match it with the receivable in EUR. Enter the correct exchange rate so that the amounts match exactly. The key to linking the two offsets is the offset number, which must be the same for both.
Why does the print report combine mutual offsets from multiple partners?
In the print report, offsets are combined based on the Offset no. field. If unrelated documents appear in the report, they have the same offset number.