Step 1: Open or Create an Invoice

Open an existing Purchase invoice or create a manual invoice from the Purchase Inbox.

This allows you to apply previously recorded supplier advances before processing the invoice, improving payment reconciliation and purchase accounting accuracy.

Step 2: Select the Party Ledger

Select the appropriate Party Ledger to activate the Set-Off section.

(manual invoice)

(uploaded invoice)

Once the supplier ledger is selected, Accomation.io enables advance payment adjustment options, allowing you to reconcile supplier advances with the current purchase invoice.

Step 3: Open Against Reference

In the Set-Off section, click the Against Reference icon. (manual invoice)

(uploaded invoice)

A pop-up displays all advance payments created for the selected supplier before the invoice date, making it easy to identify available advances for adjustment.

Step 4: Select the Advance Payment

Choose the appropriate advance payment from the displayed list to adjust it against the current Purchase invoice. Selecting the correct reference ensures accurate supplier reconciliation and prevents duplicate payment recording.

Step 5: Enter the Set-Off Amount

Enter the amount to be adjusted against the selected advance payment.

(manual invoice)

(uploaded invoice)

Any remaining invoice balance is automatically recorded as a New Reference, ensuring accurate outstanding balances and proper accounting treatment.

Step 6: Save or Continue Processing

Save the changes to record the reference, or complete the remaining invoice details before clicking Push to Review or Push to Tally. (manual invoice)

(uploaded invoice)

This ensures the purchase transaction and advance adjustment are processed accurately within your accounting workflow.

Simplify Advance Payment Reconciliation

The Set-Off feature helps businesses efficiently adjust supplier advances against Purchase invoices, improving payment tracking, reducing manual reconciliation, and ensuring accurate financial records across Accomation.io and Tally.

How to set off advance payments against invoices in purchase module?