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:
See also 7.5.10.5.1. Creating a Mutual Settlement document. The Main tab
2. At Accounts Payable tab, select the payable document from this Supplier (please use Pick options to select outstanding invoices):
See also 7.5.10.5.2. Creating a Mutual Settlement document. The Accounts Payable tab
Mutual Settlement creates the following transaction:
3. Create Other Income document with Transaction type Reversal to adjust Income with Shareholder's account:
Add Shareholder's Account (BS Capital Issued) in Credit side. Select Shareholder as a Company (Shareholder should be created as a company) and its Contract in Dimensions
Add the same Income GL Account in Debit side (this GL Account was added in Mutual Settlement earlier):
Other Income document creates the following transaction:
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# pay from owner account