Compensation allows for registering mutual deduction of receivables/due payments, that is for creating associations between receivables and payables of a given entity or their group.

Compensations can be made by registering a compensation document with the use of the button [Combine] or [Compensate].

To be able to make compensations in all available places of the system, it is necessary to, from the level of Configuration → Operator Groups → edition of specific operator group → Other Permissions, check parameter Making of compensations. The possibility of reading, modifying or deleting compensation depends on checking parameters available from the level of Configuration → Operator Groups → edition of specific operator group → Other Permissions → Compensation. To be able to compensate all objects (transactions/payments), the user must be entitled to read payments and cash/bank transactions.

Compensation with the use of the button [Combine]

It is possible to compensate a payment with the use of button [Combine] from the level of:

• cash/bank transaction details
• payment details

The mechanism of making compensation is the same both from the level of transaction details as from the level of payment details. In order to make a compensation from the level of transaction details, it is necessary to:

• edit the form of a given transaction
• check Compensation parameters which is available over the list of documents to complete. After checking the parameter, transactions of the opposite type will be displayed on tle list Documents to Be Paid. It means that in case of completing a transaction of revenue type, additionally, all uncompleted transactions of expense type will be displayed on the list and in case of completing a transaction of expense type, all uncompleted transactions of revenue type will be displayed on the list.
• on the list of documents to be paid, check toe transaction with which the edited document has to be compensated
• click on the button [Combine] placed in the Payments group of buttons. The same effect can be obtained by double-clicking on a given transaction/payment.

After making a compensation, a document completing a given transaction appears on the list Documents to Be Paid. Additionally, if such document has been paid in full, it will not be displayed on the list Documents to Be Paid anymore.

Compensation with the use of the button [Compensate]

It is possible to compensate a payment with the use of button [Compensate] from the level of:

• payment estimate
• cash/bank transaction details
• payment details
• list of customer and vendor payments
• list of receivables/payables

The mechanism of making compensation is the same for all the levels.

In order to compensate a payment from the level of the payment estimate, it is necessary to mark it on the payment list and select the button [Compensate]. It opens the list of all open payments of opposite type associated with the same customer/vendor from which it is necessary to select documents to be compensated.  After selecting a payment, it is necessary to click on the [Combine] button.

Compensation documents allow for registering mutual deduction of receivables/due payments, that is for creating associations between receivables and payables of a given entity or their group.

The functionality of registering compensation documents is available only if on the definition of the company the parameter Register compensations is checked. The parameter is:

• unchecked on databases in Polish language version, with a possibility to check it at any moment
• unchecked on databases in English and German language version, with a possibility to check it at any moment
• unchecked on databases in French and Spanish language version, without a possibility to check it

The list of compensation documents is available from the level of Finances, under the button [Compensations].

A compensation document is visible on the list, if:

• was issued by the center to which the user is currently logged−in
• it was issued by a center which is subordinate to the current center
• it was added by a center which makes it available (by specifying its visibility for document types) for the current center or a center which is subordinated to the current center

The list contains standard buttons which have been described in article <<Standard buttons>>.

The list is composed of the following columns:

• Document Number
• Date of Issue
• Date of Compensation
• Entity Code
• Entity Name
• Address − address of the entity indicated on the compensation
• Value – compensation amount
• Currency
• Status − compensation document status (Initiated, Unconfirmed, Confirmed, Posted, Canceled)

And columns hidden by default:

• Reference Number − number entered by a user for providing an additional identification of a document
• Compensate Documents − allows for filtering compensation documents by the value of the parameter Compensate documents
• Owner − center of the company structure which is the issuer of a document

Detailed description of functioning of the filters can be found in category <<Searching and filtering data>>>

In the system, it is possible to compensate transactions denominated in different currencies, that is to compensate transaction denominated in system currency with a transaction denominated in a foreign currency.  When compensating documents denominated in different currencies, an exchange rate difference is not calculated.

Compensation of transaction in different currencies is available from the level of:

• cash/bank transaction form (button [Compensate] in the tab Payments)
• list of customer and vendor payments
• payment estimate

The user may generate a compensation document directly in the payment estimate. In order to do so, it is necessary to select from the list all payments/transactions which are to be compensated and select the option [Compensate] available in the Generation section. The system will open a window in which the user may select a date of compensation (by default, the system prompts the current date) and one of the following options:

• Collective compensation document − generates and opens a collective compensation document with Initiated Such document can be created only if selected payments are expressed in the same currency and were issued in the company to which the user is logged-in. In case payments regarding only one entity are selected for compensation, on the side panel of generated document, this entity will be indicated and in the tab Payer, its data will be displayed. If payments for many different entities are, compensation document will be created without entity on it.
• Individual compensation documents for entity − individual and unconfirmed compensation documents will be generated for each entity and currency. Such documents will be created only for payments issued in the company to which the user is logged-in.

After indicating the date and selecting the option [Confirm], a compensation document is generated and opened. The following fields can be edited:

• Reference Number
• Content
• Owner
• Description
• Date of Issue
• Confirmation Date
• Compensate Documents parameter

During application of a cash/bank transaction, it is possible to include a deduction for uncompleted payments of the opposite type and for correcting invoices. A deduction can be registered by associating documents directly or through a compensation document. A cash/bank transaction can be associated with already existing compensation or with a document that is generated directly from the level of the transaction during its application.

Deductions can be applied only by operators who are assigned to an operator group that is entitled to this operation (menu <<Configuration → Company Structure → Operator Group → edited operator group → tab Other Permissions, selected permission Taking account of deductions during payments>>).

During creation and conversion, that parameter is:

• activated and editable by default at any time for the operator group that is entitled to making compensations (menu Configuration → Company Structure → Operator Group → edited operator group → tab Other Permissions, selected permission Making of compensations)
• deactivated and not editable by default for the operator group that is not entitled to making compensations

A deduction can be registered after selecting the button [Complete] or [Compensate] during registration or edition of a cash/bank transaction. In order to register a deduction via the button [Complete], it is necessary to:

• select the button [Complete] from the Payments button group on the form of cash/bank transaction to invoke the list of open payments
• select the parameter Show payments of the opposite type – then the open payables will additionally be displayed on the list of receivables, whereas open receivables will be displayed on the list of payables
• indicate on the list the payments whose deduction must be registered
• select one of the options: [Compensate Selected] or [Generate Compensation] from the button group Deductions

Selecting the option Compensate Selected completes a payment of the opposite type directly. This function is analogical to the function <<Making payment with the use of [Combine Selected] button>>.

Option Generate Compensation is used to complete a payment through an automatically generated compensation document. Before a compensation is generated, a window is opened, in which it is possible to specify a compensation date and whether to apply a current transaction to the compensation.  The process of compensation generation is the same as the one described in chapter <<Generation of a compensation document in the payment estimate>>.

A deduction registration mechanism using the option [Compensate] is the same.

To add a compensation document, it is necessary to, from the level of Finances -> Compensations, select the button [Add]. It opens compensation document form.

The compensation form contains standard buttons which have been described in article <<standard buttons>> and, additionally:

• [Compensate Documents] – selecting this button creates payments for a compensation document and associates them with the payments of the documents indicated on the list of compensation items. Additionally, in the side panel of the compensation form, the parameter Compensate Documents is checked by default.
• <<[Payment Estimate]>> – button available only if in the side panel of the document a customer/vendor has been selected as entity. Clicking on the button opens the list of payment estimate filtered by a given customer/vendor.
• [Preview] – button available only if in the side panel of the document, a customer/vendor has been selected as entity. Clicking on the button opens the form of a given customer/vendor.
• [History] – button available only if in the side panel of the document, a customer/vendor has been selected as entity. Clicking on the button opens all transactions executed with participation of a given customer/vendor.

The form of compensation document is composed of the following elements:

Side panel

• Document status – status of a currently opened document
• Number – entered automatically by the system according to numerator definition
• Value – compensation amount
• Receivables – total of document receivables
• Payables – total of document payables
• Amount Remaining – total of Remaining amounts from document items
• Reference Number – number entered by a user for providing an additional identification of a document
• Entity – selected from the list of: customers/vendors, employees, banks or institutions. It is not obligatory to fill in this field on the compensation form but it facilitates the registration of compensations with a single entity.
• Date of Issue – the current date is set by default, can be changed by the user
• Date of Compensation – the system date is set by default, can be changed by the user This field is updated automatically in case of changing the date of issue, on condition that a document does not contain items
• Confirmation Date – set as the system date, by default; it can be changed until compensation document is posted
• Compensate Documents – selecting this button creates payments for a compensation document and associates them with the payments of the documents indicated on the list of compensation items. More information regarding functioning of the parameter can be found in description of the tab
• Content – predefined value defined in document definition with a possibility to change it. A user can add new message content level of Configuration -> Generic Dictionaries -> General -> E-mail Content.
• Currencies – a document currency is retrieved by default on the basis of a currency assigned to an entity selected by the user, with a possibility to change it. If a currency assigned to that entity is inactive, currency in the compensation document is set as the system one. It is only possible to change currencies if a given compensation document does not contain items.

An exchange rate is retrieved on the basis of settings specified in the definition of a given document type (Configuration → Company Structure → Rights Structure → Relevant company form → Documents tab).

In the case where the user selects the option none as the exchange rate type, created payments will use an exchange rate from the compensation document items.

• Owner – center of the company structure which is the issuer of a document. Owner can be changed in a compensation document only if the document is unconfirmed. Documents issued in the same company but different centers can be edited. Documents issued in different companies can be previewed only.
• Reference Number – number entered by a user for providing an additional identification of a document

Tab Items

The tab contains lists of receivables and payables added to a compensation document. The lists are composed of the following columns:

• No. – item ordinal number
• Document – system document number
• Reference Number
• Due Date – due date for payment or document date for transaction
• Receivable/Payable – payment/transaction amount remaining to be completed without the current compensation. Amounts of receivables and expense transactions are indicated in the column Receivable, whereas amounts of payables and revenue transactions are indicated in column
• Compensation – amount subject to compensation
• Amount Remaining – payment/transaction amount remaining to be completed, including the compensation. Amounts of receivables are presented with positive sign, whereas amounts of payables are presented with negative sign.

And columns hidden by default:

• Entity Code – entity’s code indicated on payment or cash-bank transaction
• Entity Name – entity’s name indicated on payment or cash-bank transaction

Selecting the button [Add] on the list of items opens the list of payment estimate with a possibility of checking selected items. The list contains only uncompleted payments for the entity and currency indicated on the compensation document. If no entity is indicated, the payment estimate is displayed with the parameter All customers and vendors checked automatically in the filter section regarding the entity, which allows for adding payment compensation of different entities to the document.

The payment estimate opened while adding compensation document items contains a parameter Partial compensation. If this parameter is selected, the list will display an additional column To Compensate, presenting an amount to be compensated in the case of a given payment/transaction.  By default, an amount to be compensated equals an amount to be paid. However, the user may change this amount in a range [0; Remaining]. In the column To Compensate, amounts are presented in absolute terms. However, when summing up the column, the data is presented with a plus or minus sing, depending on the payment/transaction type (receivables and expense transactions with plus sign and payables and revenue transactions with minus sign).

The system controls whether a given payment has already been selected in this particular document and displays a summary of marked records in a given section.

Upon selecting elements from the payment estimate, a window with information about items added and not added to compensation is displayed:

Tab Payer

This tab presents the data of an entity selected as a payer in the document side panel. The system imports the main, default address of an entity which is next copied into a printout of the compensation document. If the document side panel does not contain any payer, the address section of the printout will present the data of all payers selected in payments.

Tab Payments

This tab displays the payments of a compensation document associated with payments indicated as items. The creation of payments and their association with the payments of documents selected as document items depends on the value of the Compensate Documents parameter:

• If the parameter is checked, the compensation amount is calculated and then compensation payments are generated and calculated with the payments indicated as compensation items. On the lists of receivables and payables and in payments indicated as compensation items, the amount remaining to be applied is updated, as the compensation amount is taken into consideration.
• If the parameter is unchecked, the compensation payments are not created and the amount remaining to be completed is updated only on the list of payables and receivables of the compensation document.

The parameter Compensate Documents is checked by default. The user can uncheck it until the compensation document is confirmed. If the parameter is unchecked in a document containing items, the system will display a notification informing the user about the deletion of compensation document payments: Document status will be changed and existing payments will be deleted. Would you like to continue? Yes/No. The status of the Compensate Documents parameter (active/inactive) is remembered for a given session.

Creating and completing compensation payments is performed on the basis of the following rules:

• A payment of the Payable type is created on the basis of the sum of receivables and release transactions subject to compensation and related to a given entity. Afterwards, it is automatically associated with these receivables and transactions
• A payment of the Receivable type is created on the basis of the sum of payables and receipt transactions subject to compensation and related to a given entity. Afterwards, it is automatically associated with these payables and transactions

The user may not create a new association or delete an existing one manually. Additionally, it is not possible to merge or divide compensation payments.

If a payment/transaction has been selected as an item in a compensation document with the Compensate Document parameter inactive, the system blocks the possibility to:

• select this payment as a document item in SRO, SPO, and ST documents
• complete or compensate this payment/transaction
• delete the payment association or compensation of this payment/transaction
• select this payment/transaction as a document item of another compensation document

The user will be informed about the blockade with a notification: Unable to perform the action. The document has been selected in (compensation document number).

Tab Associated Documents

Information about the association is displayed both from the level of the compensation document and source document of the payment.

Tabs Attributes, Attachments, Change History

Detailed description of the tabs can be found in <<Article>>.