...

• Mutual Settlement: When you need to offset the customer debt against the entity's debt to a third-party company that is affiliated with the customer.
• Customer Debt Assignment: When your entity needs to transfer the customer debt to another company that is affiliated with this customer.
• Supplier Debt Assignment: When your entity needs to transfer its own debt to a particular supplier to another company that is affiliated with this supplier.
• Customer Debt Adjustment: When your entity needs to write off the customer's specific bad debt directly to operating expenses.
• Supplier Debt Adjustment: When the entity needs to directly write off its debt to a particular supplier (who is out of business) directly to other income.

  ---

It is possible to select multiple documents in a Mutual Settlement document in FirstBit ERP. On both the Accounts Payable and Accounts Receivable tabs, the "Pick" button opens a list of documents (such as invoices, payments, etc.) with amounts available for offsetting to select several documents for settlement at once. Alternatively, it is possible to add lines for each document by clicking the "Add" button and specifying the contract and particular document for each line. However, on the Payee Attributes of Mutual Settlement documents with Supplier Debt Assignment and Customer Debt Assignment types it is possible to choose only one payment document for settlement. 

If, for some reason, the types of operations described above are not suitable for the reflection of an economic operation, you can use the method of reflection of the operation, telling the system the right and left parts of the entries to be received.

1. You should reflect in the program all documents that will be involved in settlements for each company (e.g. Invoice Received, Invoice, Bank Payment, Cash payment etc.).

2. In order to determine what type of debt (accounts payable or accounts receivable) each party involved in mutual settlements has, it is necessary to generate the STATEMENT OF MUTUAL SETTLEMENTS for each company.

STATEMENT OF MUTUAL SETTLEMENTS for Company B:

Image RemovedImage Added

Based on the data from the STATEMENT OF MUTUAL SETTLEMENTS, you should fill in the Mutual Settlement.

Note. We recommend filling in the Accounts Payable tab by clicking on the Pick :

Image Modified

Select the correct GL account in the field GL account 

...