Supplier Offset—Key Exercises

IMPORTANT
It is extremely important that you set up and work within your own company and with your own supplier to maintain your data integrity. If you work with any other objects, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data must be isolated in your own company.

Basic Data Setup


Define a Write-Off Code

Purpose: The purpose of this exercise is to show you how to set up the basic data required for this particular functionality. For the Automatic Offset exercise, you will need to define a write-off code and to set up posting control for it.

  1. Enter a write-off code.
  2. Set up a posting control for the new write-off code.

General exercise for Create a Write-off Code  . In the exercise don't connect the new code to a Write-Off Template.

General exercise for Posting Control for Write-Off Codes

Required Data


Enter and Authorize Supplier Invoices

Purpose: The purpose of this exercise is to show you how to enter supplier invoices to be used in the exercises below. The invoices/installments must also be authorized for payment. For the Automatic Offset exercise, make sure that debits equal credits for each supplier, i.e., the supplier balance should be zero.

  1. Enter a supplier invoice.

General exercise for Arrival Entry Supplier Invoice 
General exercise for Post Supplier Invoice
General exercise for Authorize Supplier Invoice for Payment


Enter Supplier Payments on Account

Purpose: The purpose of this exercise is to show you how to enter supplier payments on account for use in the exercises below. For the Automatic Offset exercise, make sure that debits equal credits for each supplier, i.e., the supplier balance should be zero.

Windows:
Supplier Payment

  1. Open the Supplier Payment window, and create a new record. 
  2. In the General tab, enter a cash account, or select one from the List of Values. 
  3. In the lower portion of the window, create a new record.
  4. In the Payment Amount field, enter the amount of the payment.
  5. Click the Transaction tab, and create a new record.
  6. In the Identity field, enter your supplier.
  7. In the Amount field, enter the same amount you want to pay.

Note: The remaining amount in payment currency should now be zero.

  1. Select the checkbox New Payment On Account.
  2. Save the information.
  3. Payment information is displayed in the Message window. Confirm by clicking OK.
  4. Return to the General tab. The voucher type and related voucher number are now displayed.

Main Exercises


Supplier Offset

Purpose: The purpose of this lesson is to show you how to make offsets between supplier debit and credit invoices/installments as well as between payments on account and invoices/installments. Parked payments can also be offset. The offset function does not cause any cash flow, and the total amount must always be zero (0).

Manual Supplier Offset

Purpose: The purpose of this exercise is to show you how to offset a supplier credit invoice/installment and payment on account against a supplier invoice/installment.

Windows:
Supplier Offset

  1. Open the Supplier Offset window.
  2. Click the General tab, and create a new record.
  3. Enter the payment currency, i.e., the currency of all items included in the offset.
  4. Click the Transaction tab, and create a new record. Enter the series ID in the Series ID field, the number of the credit invoice in the No. field and the Installment ID in the Installment ID field, or select these values from the List of Values.
  5. Create a new record and enter the series ID in the Series ID field and the number of the payment on account in the No. field, or select these values from the List of Values.
  6. Create a new record and enter the series ID in the Series ID field, the number of the debit invoice in the No. field and the Installment ID in the Installment ID field, or select these values from the List of Values.
  7. Save your changes. A window appears with payment information.
  8. Click OK to close the window.

Note: Instead of entering the three lines manually, you can right-click and then click Select Batch to open a window that you can populate with all open ledger items. Highlight the three items that should be offset, and click OK. These items are automatically copied to the Supplier Offset window.


Automatic Supplier Offset

Purpose: The purpose of this exercise is to show you how to offset a supplier credit invoice/installment and payment on account against a supplier invoice/installment.

Windows:
Supplier Offset Proposals

  1. Open the Supplier Offset Proposals window.
  2. Right-click and then click Load New Proposal.
  3. Enter the selection criteria shown in the table below.
From & Until Currency Allowed Difference Matching Method Sorted by Write-off Code Exec Mode
Supplier Identity The currency of the ledger items 0 Match All Open Items Ledger Date Your defined write-off code On Line
  1. Click OK. A new proposal will appear in the Supplier Offset Proposals window.
  2. Right-click and then click Details to view the included ledger items.
  3. Close the window, right-click, and then click Approve Offset. An window appears with payment parameters.
  4. Click OK to confirm. A window appears with voucher information.
  5. Click OK to confirm.