Offsetting Invoices and Credits

JustOn Billing & Invoice Management can offset non-related invoices and credits of an account executing settlements – an operation also known as clearing.

Think of a marketplace scenario: You sell products that are delivered by a participating organization. On the one hand, as you receive the customer's money, you have to pay out the vendor. To this end, you create a credit. On the other hand, you charge the vendor a commission for your brokerage, issuing an invoice. Now you can offset the invoice against the credit, thus settling the invoice and reducing the credit amount.

Manual settlement concepts

Generally, JustOn Billing & Invoice Management settles an open invoice against a new credit, and an open credit against a new invoice (also referred to as the settlement target).

Be aware of the following specifics:

• JustOn settles the complete open amount of the invoice or credit, following this rule:

  settled amount = min(abs(credit amount), abs(open invoice amount))
  

• The payment due dates of the invoice or credit are irrelevant for the settlement.

• If you work with business entities, the business entity specified for both the invoice and the credit must match for the settlement to take place.

• Using an optional settlement assignment key on both invoices and credits narrows down the set of invoices and credits available for automatic settlements. Only invoices and credits with the same key can be settled with each other automatically.

  Users can still select any invoices and credits for manual settlements, irrespective of defined settlement assignment keys.

  Enabling Settlement Assignment Key

The settlement itself is implemented by balances on the open invoice and on the new (target) invoice.

New invoice balance

Field	Value
Type	Settlement
Amount	<settlement amount>
Related Invoice	<settled invoice ID>

Settled invoice balance

Field	Value
Type	Clearing
Amount	-1 * <settlement amount>
Related Invoice	<new invoice ID>

For more details, see Settlements.

You can settle a single invoice or credit manually, starting from the new (or target) invoice or credit, respectively.

To settle an open invoice:

1. Open the credit against which you want to settle the open invoice.

2. Click to open the action menu, then select Settle.

   This displays the invoices that can be settled (status Open and due date reached).

   Using a settlement assignment key on both invoices and credits narrows down the set of invoices and credits available for automatic settlements.

3. Select the invoice to be settled.

   You can select any invoice for manual settlement, irrespective of whether it has a matching settlement assignment key or not.

4. Click Settle selected.

   This creates the settlement balance on the credit.

5. Click Finalize.

   This links the target credit with the settled invoice and creates the clearing balance on the settled invoice.

To settle an open credit:

1. Open the invoice against which you want to settle the open credit.

2. Click to open the action menu, then select Settle.

   This displays the credits that can be settled (status Open and due date reached).

   Using a settlement assignment key on both invoices and credits narrows down the set of invoices and credits available for automatic settlements.

3. Select the credit to be settled.

   You can select any credit for manual settlement, irrespective of whether it has a matching settlement assignment key or not.

4. Click Settle selected.

   This creates the settlement balance on the invoice.

5. Click Finalize.

   This links the target invoice with the settled credit and creates the clearing balance on the settled credit.

Info

JustOn prints the balances to the invoice PDF, as described in Configuring Balance Table on Invoices.

After the target invoice/credit has been finalized, you may have to generate the PDF for the settled invoice/credit again for the clearing balance to be included.