Offset a Credit Memo

Credit Memos are applied to Supplier Invoices to reduce the liability. This can be done using the ACCOUNTS PAYABLE > Supplier Adjustment feature.

To carry out an offset, click Create Supplier Adjustment on the Supplier Adjustment homepage. Choose the Supplier, adjustment date and currency.

The Supplier’s open invoices and Credit Memos will be listed when you click Submit.

Select the Credit Memo and the Invoices to be offset by clicking the selection checkbox against them. Click Compute and the adjustment proposal will be shown, with the Credit Memo value applied to the Invoices under the Current Adjustment column.

Click Adjust and the adjustment becomes final.

*No accounting transaction is created in this case as the same account – Payable – gets debited and credited by the offset

All Supplier Adjustments (offsets) can be searched and listed on the Supplier Adjustment home page