Problem: How to reallocate an advance payment from one supplier to another?
Solution: Generate a Mutual Settlement document for supplier debd assignment as shown.
As a Payment document to record the prepayment made to the supplier is already created, then follow the steps below to transfer the balance.
Example
Company A is the supplier who received the prepayment, and Company B is the new supplier to whom the prepayment needs to be transferred.
The Bank Payment NNBP25-00000001, dated 3/3/2025, has been posted for the advance payment to Company A.
Create a Mutual Settlement document (Accounting > Service Tools > Mutual Settlements) with transaction Type Supplier Debt Assignment:
In the Supplier field, select Supplier (Company A)
In the Supplier Recipient field, select Supplier Recipient (Company B)
At the Accounts Payable tab use the button Pick for choosing a Bank Payment or Cash Payment for Supplier, double-click on the document, then press OK:
At the Payee Attributes tab, specify the Contract, Document, and Amount of Settlement:
Accounts Amount (Accounting Amount at the Accounts Payable tab) and Amount of Settlements (Accounting Amount at the Payee Attributes tab) should match.
6. As the Mutual Settlement document is posted, the corresponding record is created and documents are settled:
Generate Statement of Mutual Settlements report (or any relevant report) and check mutual settlements for each company:
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