Problem: How to reallocate an advance payment from one supplier to another?
Solution: Generate an unposted cash payment entry in the bank as shown.
To transfer a prepayment from one supplier to another, several transactions must be processed as there is no direct method for this.
As a Payment document to record the prepayment made to the supplier is already created, then follow the steps below to transfer the balance.
Example
Company B is the supplier who received the prepayment, and Company A is the new supplier to whom the prepayment needs to be transferred.
The Bank Payment EIBP24-00000013, dated 4/1/2024, has been posted for the advance payment to Company B.
1. Create an empty Bank Payment or Cash Payment for Supplier and don't post it:
Fill the Main tab (Amount is 0):
Fill the Payment Details tab:
2. Create a Mutual Settlement document (Accounting > Service Tools > Mutual Settlements) with transaction Type Supplier Debt Assignment:
In the Supplier field, select Supplier Recipient
In the Supplier Recipient field, select Supplier
At the Accounts Payable tab use the button Pick for choosing an empty Bank Payment or Cash Payment for Supplier Recipient, double-click on the document, then press OK:
At the Payee Attributes tab, specify the Contract, Document, and Amount of Settlement:
Accounts Amount (Accounting Amount at the Accounts Payable tab) and Amount of Settlements (Accounting Amount at the Payee Attributes tab) should match.
6. As the Mutual Settlement document is posted, the corresponding record is created and documents are settled:
Generate Statement of Mutual Settlements report (or any relevant report) and check mutual settlements for each company:
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