Netting of debts is an important tool for businesses that have both receivables and payables to the same counterparty. This operation allows for automatic balancing of debts between parties, reducing the administrative burden and minimizing the number of financial transactions.
Let's consider the option of conducting such a mutual settlement.
We have a partner "FOP Kushnir E. V.". An invoice for UAH 12,000 was issued for this partner:
Also received an invoice from the supplier (bill of payment) for UAH 3,600:
We will offset these debts.
To do this, go to the "Invoicing" module, "Accounting" menu - "Journal elements":
A window will open with a list of accounting records. For convenience, we will use the search. We will find the transaction records that relate to the partner we need, “FOP Kushnir E. V.”:
Next, we filter to see only settlement records for this partner:
In the received list, we see two entries that interest us. The first is for the partner's debt to us of 12,000 UAH and the second is our debt to the partner of 3,600 UAH.
Select these lines. Click the "Action" - "Automatic entries" button:
In the new window, enter the date of the netting, the journal, and the account to which the debt will be transferred (here you can specify both the account for settlements with the buyer and the account for settlements with the partner - this is not essential). Click "Create journal entries."
The Odoo system will automatically generate debt transfer postings:
The supplier invoice status will change to "Paid." At the bottom, you can click on the payment information button, and there you can see that this is a netting:
The customer's invoice will change to the "Partially Paid" status:
