Mass Offset

Mass offset means you can offset one or more credit bills against one or more debit bills and vice-versa in the same currency. Let us understand this with the help of an example.

The following table lists the bills of a customer which are available for mass offset:
Account Bill Due Date Bill Segment Contract Type Priority Bill Segment Amount Outstanding Bill Amount Hold Amount
A11 Bill 1 01-15-2019 BS1 10 -$50 -$100 -
BS2 20 -$50
Bill 2 01-20-2019 BS3 10 -$50 -$50 -
Bill 3 01-18-2019 BS4 10 $30 $50 -
BS5 10 $20
A12 Bill 4 01-21-2019 BS6 10 $30 $30 -
Bill 5 01-25-2019 BS7 20 $30 $40 -
BS8 30 $10
A13 Bill 6 01-29-2019 BS9 10 $20 $20 -

The system enables you to offset these bills through a mass offset request. While creating a mass offset request, you can add the Bill 1 as the primary bill. Once the offset request is created, you can add another credit bill (i.e. Bill 2) and the debit bills - Bill 3, Bill 4, Bill 5, and Bill 6. Note that you can only add completed bills to an offset request. The system then calculates the total credit and debit bill amount which is available for offsetting, as shown below:

Sum of credit bills’ amount which is available for offsetting: 
(-$100+(-$50))= (-$100-$50)=-$150
Sum of debit bills’ amount which is available for offsetting: 
($50+$30+$40+$20)=$140

The system considers the credit or debit bills’ total whichever is less as the default offset amount. In this case, the default offset amount is set to $140. You can change the offset amount of a bill, if required. However, you need to ensure the following:

  • Offset amount of the selected bill is not equal to zero

  • Total debit offset amount is equal to total credit offset amount in the offset request

  • Negative offset amount is specified for the debit bill and positive offset amount is specified for the credit bill

  • Offset amount is less than or equal to the current outstanding amount of the bill

Note: If you add or remove a bill from the offset request after updating the offset amount, the system overrides the offset amount with the default offset amount. In such scenarios, you have to update the offset amount of the bills once again.

On submitting or approving a mass offset request, the system creates the transfer or offset adjustments using the adjustment type which is specified in the offset request. If the Transfer Adjustment option is selected in the respective offset request type, the system creates the transfer adjustments in the Frozen status.

The following table lists the transfer adjustments that are created during the mass offset with respect to the above example:
Transfer Transfer Adjustments
1

  • $30 transfer adjustment is created for Bill 1 and matched to -$50 bill segment cancellation (BS1) FT 1

  • -$30 transfer adjustment is created for Bill 3 and matched to $30 bill segment (BS4) FT 4
2

  • $20 transfer adjustment is created for Bill 1 and matched to -$50 bill segment cancellation (BS1) FT 1

  • -$20 transfer adjustment is created for Bill 3 and matched to $20 bill segment (BS5) FT 5
3

  • $30 transfer adjustment is created for Bill 1 and matched to -$50 bill segment cancellation (BS2) FT 2

  • -$30 transfer adjustment is created for Bill 4 and matched to $30 bill segment (BS6) FT 6
4

  • $20 transfer adjustment is created for Bill 1 and matched to -$50 bill segment cancellation (BS2) FT 2

  • -$20 transfer adjustment is created for Bill 5 and matched to $30 bill segment (BS7) FT 7
5

  • $10 transfer adjustment is created for Bill 2 and matched to -$50 bill segment cancellation (BS3) FT 3

  • -$10 transfer adjustment is created for Bill 5 and matched to $30 bill segment (BS7) FT 7
6

  • $10 transfer adjustment is created for Bill 2 and matched to -$50 bill segment cancellation (BS3) FT 3

  • -$10 transfer adjustment is created for Bill 5 and matched to $10 bill segment (BS8) FT 8
7

  • $20 transfer adjustment is created for Bill 2 and matched to -$50 bill segment cancellation (BS3) FT 3

  • -$20 transfer adjustment is created for Bill 6 and matched to $20 bill segment (BS9) FT 9

However, if the Transfer Adjustment option is not selected in the respective offset request type, the system creates the offset adjustments in the Frozen status. Considering the above example, the system will create the following offset adjustments for the offset request:

  • $50 offset adjustment is created for Bill 1 and matched to -$50 Bill Segment Cancellation (BS1) FT 1

  • $50 offset adjustment is created for Bill 1 and matched to -$50 Bill Segment Cancellation (BS2) FT 2

  • $40 offset adjustment is created for Bill 2 and matched to -$50 Bill Segment Cancellation (BS3) FT 3

  • -$30 offset adjustment is created for Bill 3 and matched to $30 bill segment (BS4) FT 4

  • -$20 offset adjustment is created for Bill 3 and matched to $20 bill segment (BS5) FT 5

  • -$30 offset adjustment is created for Bill 4 and matched to $30 bill segment (BS6) FT 6

  • -$30 offset adjustment is created for Bill 5 and matched to $30 bill segment (BS7) FT 7

  • -$10 offset adjustment is created for Bill 5 and matched to $10 bill segment (BS8) FT 8

  • -$20 offset adjustment is created for Bill 6 and matched to $20 bill segment (BS9) FT 9

Similarly, the transfer or offset adjustments are created when the bills are offset across accounts of the person hierarchy. The system distributes the amount from the credit bill starting with the oldest due date. For more information on how the offset amount is distributed, see C1-OFST-DIST.

You can create a mass offset request through the Account Receivables Central and Offset Request screens. For more information on how to create a mass offset request, see Creating an Offset Request.