Documents with the Supplier Debt Assignment transaction type are created when your entity needs to transfer its own debt to particular supplier to other company that is affiliated with this supplier. The transaction should result in positive balance in each of the involved documents.

For example, you can use a document with this transaction type when your entity needs to offset its debt to a particular supplier against a payment made to a third-party company that is actually affiliated with this supplier as the headquarters and its subsidiary. The entity issued a consolidated payment to the headquarters company for the products purchased from different subsidiaries, and you need to apply this payment successively against invoices of different suppliers (subsidiaries).

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