Problem: How to adjust Supplier Payable Account with Shareholder's account (as Shareholder is Owner of the Entity)?
Solution: 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:
In Accounts Payable Tab select the payable document from this Supplier, you can use Pick options to select outstanding invoices
Mutual Settlement will create the following transaction:
3) Enter Reversal Other Income Transaction, to adjust Income with Shareholder's account
In GL Account CR Shareholder's Account (BS Capital Issued) should be selected with Company (shareholder can be created as a company) and Contract in Dimension, in Account Dr PL Income Account that was added in Mutual Settlement should be selected:
Other Income document will create following transaction:
