Problem: How to pass Following transaction in the system :
Owner's Current account Debit side
Current trade payable account Credit side (Branch Company)
Solution: This entry can be done by Mutual Settlement, Register Correction and General Ledger Transaction documents
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because there is no direct way to resolve and beside GL entries some registers need to be fixed but since it is not always easy to understand which registers to fix therefore we create a Mutual settlement document to create one part of entry and understand the linked register.
1) Create a new Mutual Settlement document with transaction type Supplier Debt Assignment. In both Supplier and Supplier Recipient fields select Branch Company:
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I's creating DR Prepayments to Supplier Transaction that should be Reversed and CR Current Trade Payable and adding Payable document in Company's Statement:
The Above highlighted Advance Expense Record in Accounts Payable Register will be reversed by Register Correction Document.
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The Content should be the same that you've checked in Mutual Settlement Records, but Instead of Expense it will be reversal Receipt Type:
Period - Reversal Period, it should correspond with Mutual Settlement Date
Activity - select Yes
Register records type - for the Reversal entry it should be Receipt
Entity - Copy from the screenshot above (from Mutual Settlement)
Accounts Type - Advance
Company - Copy from Mutual Settlement
Contract - Company contract (Copy from Mutual Settlement)
Document - Mutual Settlement
Is Loan - No
GL Account - Prepayment to Suppliers (Copy from Mutual Settlement)
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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