Problem: I have Payable balance and Advance Paid to the same company both of the document are entered in previous period and I cannot change them, and Advance is represented as Mutual Settlement?
Solution:
1. Suppose that COMPANY AERO has payable balance (Invoice Received from closed period) and Advance Paid represented as Mutual Settlement, these two documents need to be adjusted with each other:
2. Enter Mutual Settlement document to write off Payable Balance , Transaction Type - Supplier Debt Adjustment, in Account select any PL Income Account:
In Accounts Payable Tab select Payable Invoice received using Pick option:
Once you post Mutual Settlement following transaction will be created:
3. Create Other Income document to reverse income and close Prepayments to Supplier Account, Transaction Type - Reversal:
in GL Account Cr select Prepayments to Supplier (or any other which is debited in Advance Mutual Settlement) account with company and contract in the dimension;
In Income GL Account Dr select the income account that you've select in Mutual settlement (For Invoice Received write off):
Once you post Other Income following transaction will be created:
4. Create Register Correction to remove Advance Mutual settlement from the statement:
In Administration section open Register Correction and Create a new document:
In Register Content Settings in Accumulation Register select Accounts Payable:
In order to fill the line you need to check Advance Mutual Settlements record:
The Content should be the same that you've checked in Mutual Settlement Records, but Instead of Expense it will be reversal Receipt Type:
Period - Reversal Period, it should correspond with Mutual Settlement Date
Activity - select Yes
Register records type - for the Reversal entry it should be Receipt
Entity - Copy from the screenshot above (from Mutual Settlement)
Accounts Type - Advance
Company - Copy from Mutual Settlement
Contract - Company contract (Copy from Mutual Settlement)
Document - Advance Mutual Settlement
Is Loan - No
GL Account - Prepayment to Suppliers (Copy from Mutual Settlement)
Amount - Amount should be equal to the amount entered in Mutual Settlement
5. In Statement of Mutual Settlements, you'll have Company's closed:
And the following transactions will be in Trial Balance as a result:
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