Case- Client would like to : The client must offset an Invoice invoice and a credit note of in the same currency but different currency rate which has variance in currency.
Solution-
Client has an Invoice record at the , but with differing exchange rates, leading to a currency variance.
The client has an invoice recorded at an exchange rate of 3.65 and a credit note at the a rate of 3.68, this manual will explain . This guide explains how to offset the balance.
Create a mutual settlement document with Mutual Settlement Document - Select the transaction type Customer debt assignmentDebt Assignment
In the Accounts Receivable tab, use the Pick option to select the invoice details.
In the Payee Attributes tab, use the Pick option to select the credit note document.
Ensure the accounting amounts in both tabs are equal while maintaining the original exchange rates.
Since the invoice amount is lower, adjust the settlement amount in the Payee Attributes tab to align the Accounting amount of both tabs.
Secondly, ensure that the same GL account is used in the Mutual Settlement document matching it with the original document i.e. the credit note.
Once the details are entered, post the document. The invoice balance will be fully offset, while the credit note will show a remaining balance since it is not completely closed.
By following these steps, the invoice and credit note will be offset correctly while preserving the original exchange rates.
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