Problem: How
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to adjust Supplier Payable Account with Shareholder's account (
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as Shareholder is Owner
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of the Entity)?
Solution:
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Use Mutual Settlement and Other Income documents as shown below.
1. To write off Payable Balance, create Mutual Settlement document with Transaction Type - Supplier Debt Adjustment, .
Select relevant Income GL account in Account field any Income GL account can be selected:
In Accounts Payable Tab select the payable document from this Supplier, you can use Pick options to select outstanding invoices
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Mutual Settlement will create the following transaction:
3) Enter Reversal Other Income Transaction, to adjust Income with Shareholder's account
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