How to offset invoices and credits of the same amount

How to offset invoices and credits of the same amount

It may happen that you issue an invoice and have to later credit the full amount. In this case, you won't want financials to still reflect something that's no longer owed. In ParagonERP, you can offset the invoice and credit in a few easy steps by using the receive payment module.

In this article, we'll show you how, so that you can have clean financial reports. 

Step 1: Create a manual on account payment


After having issued an invoice and credit, you'll notice that both transactions are being included on the AR aging report. Once you know that the amount on the invoice isn't owed anymore, you'll want to clear that amount from your AR aging. 



To do this, first go to the receive payment module.



Create a new, manual on account payment.





Select your customer, transaction date, and fill in any necessary attributes.



Step 2: Add your invoice and credit to the payment

Hit the add new button. Here select your invoice. Hit the accept button. 


Hit the add new button. Here, select your credit. Hit the accept button.




Enter the full amounts in the payment column. Once the total amount of the payment is zeroed out, save the transaction.


Once you're ready to offset the transactions, issue your $0.00 payment from the action button. 


Notice the amber notification that you'll receive. This lets you know that no journal entry was created because the payment was for a total of $0.00. 



I've offset my invoice and credit, now what? View your AR Report! 

Once you've offset your invoice and credit (once you've issued the $0.00 receive payment), you can view your AR Aging report to see that neither the credit nor the invoice are being included.  Navigate to the report module. 


Select your AR aging report from either the left hand menu or the finance card. 


You can see that the invoice and credit you've offset no longer appear on the report. 

 

    • Related Articles

    • How to use the AR Aging Report

      Introduction If you're using a system such as Paragon, you are no doubt selling products, services, or both and therefore would likely want to be paid for your hard work. Once you issue invoices to your clients, you need the ability to see, at a ...
    • Paragon Financials - Trial balance report

      The trial balance report allows accountants to confirm that all entries that were posted in the general ledger for a given fiscal period are balanced. In simplest terms, the trial balance confirms that all debits equal all credits. This article will ...
    • Customer statements report

      Introduction Keeping your customers informed about how much they owe you is essential, and having one standardized document for these statements is common practice. From the print or email button on each customer, a customer statement will be ...
    • How to see what a customer owes in open AR

      Paragon ERP makes it easy to see important information pertaining to a customer all in one screen. In this doc, we'll show you how you can view customer financials in just one click of a button! Step 1: Open customer module From the main screen, open ...
    • How to view the A/P aging report

      In Paragon, you can see the balance you owe to your vendors through a variety of features. The AP aging report allows you to view your accounts payable filtered by currency, due date, customer, and more.  Here, we'll show you how to view your balance ...