AR/AP adjustment overview

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An AR/AP adjustment is a document that a company issues to adjust a customer balance or supplier balance, or both of them.

Use an AR/AP adjustment document to record the following business operations:

Operation	Document purpose
Accounts settlement	Record offset of a customer balance against a supplier balance. For example, a business entity operates as both a customer and a supplier of a company. As a customer, the business entity owes USD 1000 to the company. As a supplier, the business entity invoiced the company for USD 2000. Then, the company can offset USD 1000 of the customer debt against the company's debt of the same amount.
AR assignment	Record transfer of balances of one customer to another customer. Examples: A customer is a business entity that owes USD 1000 to a company. At some moment, the business entity transfers its rights and contract obligations to another business entity. This another business entity becomes the company's new customer and the old customer's debt must be transferred to the new customer. To record this change, the company assigns USD 1000 debt to the new customer. A company records a customer's payment by order. It turns out the order was specified incorrectly, but the payment document cannot be changed. To correct the payment record, a company assigns the customer's payment to another order.
AP assignment	Record transfer of balances of one supplier to another supplier. Examples: A company owes USD 1000 to a supplier. At some moment, the legal entity type or brand name is changed for the supplier. This makes a new supplier with the old balance of USD 1000. To record this change, the company assigns its debt of USD 1000 to the new supplier. A company has a supplier that is a business entity with two subsidiaries. The company pays for the goods to the first subsidiary, but the goods are delivered by the second subsidiary. In the company's records, this makes an advance payment to the first subsidiary and a debt to the second subsidiary. To correct the records, the company transfers the payment to the second subsidiary.
AR adjustment	Record customer balance adjustment. Examples: A customer owes to a company USD 1000. The customer goes bankrupt. Then the company adjusts the customer balance by writing off USD 1000. A company and a customer agree on the customer balance decrease by a certain amount. Then the company adjusts the customer balance by this amount.
AP adjustment	Record supplier balance adjustment. Examples: A company owes to a supplier USD 1000. The supplier abandons the market and no longer exists. Then the company adjusts the supplier balance by writing off USD 1000. A company and a supplier agree on the supplier balance decrease by a certain amount. Then the company adjusts the supplier balance by this amount.
Customer advance clearing	Clear an advance payment received from a customer. For example, a company receives a customer's advance payment by order. Later, the customer asks to apply that advance payment to pay for another order. Then the company clears the advance payment against the required order.
Supplier advance clearing	Clear an advance payment made to a supplier. For example, a company makes an advance payment to a supplier by order. It turns out the order was specified incorrectly, but the payment document cannot be changed. To correct the payment record, a company clears the advance payment against another order.

1C:Drive stores all AR/AP adjustment documents in the AR/AP adjustments list. To open it:

Do one of the following:
- Go to Sales. Then, under Settlements with customers, click AR/AP adjustments.
- Go to Purchases. Then, under Settlements with suppliers, click AR/AP adjustments.

In this list, you can:

For the detailed description of the AR/AP adjustment document fields, see AR/AP adjustment document fields.

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