How to Offset Accounts Receivable with Accounts Payable Invoices From One Party in One Payment

In certain situations, clients may request the ability to offset their Accounts Receivable (AR) invoices against Accounts Payable (AP) invoices or credit notes. Our system facilitates the offsetting of both AR and AP invoices for the same entity in a single payment transaction.

Steps to Offset AR and AP Invoices:

1. Access the Receive Payment Page
   • Navigate to Tools > Receive Payment to enter the payment receive page.
2. Utilize the “Show More Invoice(s)” Function
   • To offset AR and AP invoices, click the “Show More Invoice(s)” button in the page's upper right-middle corner.
3. Search for Additional Invoices
   • After clicking the “Show More Invoice(s)” button, you can search for additional AR invoices, AP invoices, debit notes, or credit notes.
   • For instance, select AP as the invoice type and then click Search. The system will display applicable invoices, such as NP-00582, that can be included in the payment.
4. Add the New Invoice and Set the Offset Amount
   • Upon selecting the appropriate invoice, determine the amount you wish to offset from either the AR or AP invoice.
   • After setting the offset amount, click Save. The total transaction Paid Amount for this payment will display as 0, indicating the offset.
5. Verify the Offset
   • After completing the offset, check the AR or AP invoice. You will see that the paid amount is partially paid, and the amount due remains partially unpaid.
6. Apply the Offset to Multiple Invoices
   • This process can be repeated for multiple invoices. Simply follow the same steps for each additional invoice that requires offsetting.

Conclusion

By following these steps, you can effectively offset AR and AP invoices in a single payment transaction.

For a visual guide on using this feature, please refer to the following video:

• Offset AR with AP in One Payment

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