Problem:
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Solution: This entry can be done by Mutual Settlement, Register Correction and General Ledger Transaction documents.
1) Create a new Mutual Settlement document with transaction type Supplier Debt Assignment. In both Supplier and Supplier Recipient fields select Branch Company:
In Accounts Payable Tab select the contract and put the amount, Advance option will be populated automatically once the document field is empty, default GL account here is Prepayments to Suppliers (BS Trade and Other Receivables) or you can select another available account from the list :
In Payee Attributes select the contract and put the amount, the amount should be equal to the amount in Accounts Payable tab:
Once you post the document you can check the created transaction by pressing DR-CR sign:
I's creating DR Prepayments to Supplier Transaction that should be Reversed:
The Above highlighted Advance Expense Record in Accounts Payable Register will be reversed by Register Correction Document.
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I have Payable balance and Advance Paid to the same company both of the document are entered in previous period and I cannot change them, and Advance is represented as Mutual Settlement?
Solution:
1) Suppose that COMPANY AERO has payable balance (Invoice Received from closed period) and Advance Paid represented as Mutual Settlement, these two documents need to be adjusted with each other:
2) Enter Mutual Settlement document to write off Payable Balance , Transaction Type - Supplier Debt Adjustment, in Account select any PL Income Account:
In Accounts Payable Tab select Payable Invoice received using Pick option:
Once you post Mutual Settlement following transaction will be created:
3) Create Other Income document to reverse income and close Prepayments to Supplier Account, Transaction Type - Reversal:
in GL Account Cr select Prepayments to Supplier (or any other which is debited in Advance Mutual Settlement) account with company and contract in the dimension;
In Income GL Account Dr select the income account that you've select in Mutual settlement (For Invoice Received write off):
Once you post Other Income following transaction will be created:
4) Create Register Correction to remove Advance Mutual settlement from the statement:
In Administration section open Register Correction and Create a new document:
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Amount - Amount should be equal to the amount entered in Mutual Settlement
3) In order to create the GL entry open Transactions (General Ledger) in Accounting section and create a new one:
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