ProblemIssue: How to assign transfer Accounts Receivable from one company to another and Close this Balancereconcile the balance?Solution
Resolution: This document will explain the transfer guide outlines the process for transferring the opening balance of accounts receivable opening balance from one company to another through Mutual using a mutual settlement approach.
To clear off settle the balance, a receipt document is created generated for the payment received from the other company. 1, Create the document Entry of
- Record the initial balances
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- through a document entry in the accounting section
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- , ensuring it reflects settlements with suppliers and
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- buyer
On the Settlements with Buyers tab, specify the company, the contract, and the amount owed. Specify the GL account.
The sales document will be generated automatically.
The below entry is created with an opening balance-
Dr. Other Current Receivables
Cr Services
2,
- Create a
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- Mutual settlement document with the
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- transaction type Customer debt adjustment (to adjust the debt transferred by a third party).
Create a new mutual settlement document. Fill in the details as required. The Main tab tab provides general information about the settlement and the parties involved in the settlement. Specify the buyer,
the The accounting account, the recipient, and the contractcontract details are as follows: The "Customer" refers to the company or customer under whom the receivables were initially recorded in the opening balance. The "Company" at the lower part of the entry is the company to which this balance will be transferred.
On the calculations with buyers tab through selection, select the sales document created when entering the initial balances.
The following entry will be created: the General Ledger (GL) account will remain unchanged, but there will be differences in the Extra Dimensions for Debit (DR) and Credit (CR).
3, Create
- Generate a receipt document
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- for the funds deposited into the settlement account
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- I.e. when the receivable balance is received. Specify the transaction type as "Other."
Specify the GL Account, company, and contract .in the payment details tab
4,
- Check your actions by generating reports.
The debt transferred by a third party is closed when payment is received.
Thanks for being a First bit Bit Customer!
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#Transfer of debt #Transfer of receivable balance #customer debt adjustment #Accounts Receivable #Opening balance #Mutual settlement