Compensation: offsetting invoices with a protocol
How to offset the customer and supplier invoices of the same partner against each other, how the compensation protocol is produced, and what happens on deletion.
Compensation offsets a receivable and a payable against the same partner. The system reduces the open balance of the invoices on both sides and produces a compensation protocol, which is filed in the document centre and linked to every invoice involved.
Before you start
- Both sides need open invoices with the same partner: at least one customer invoice and one supplier invoice.
- The client company needs a storage rule for documents; without it the protocol is not produced (the compensation is still recorded).
Recording a compensation
- Open Finance → Compensation and click the + button at the top right. You can also start from the Compensate button (scales icon) in the invoice list header.
- Choose the Client company and fill in Date of compensation, Note and Document language.
- In Add invoice (magnifier icon) search for the open invoices and add them. Customer invoices go to Receivable (our customer invoices), supplier invoices to Payable (supplier invoices).
- Enter the offset amount per row. The Side total must be equal on both sides.
- Click Save. On success: “Success: the compensation has been recorded.”
Open the protocol with the PDF icon (Protocol) in the list row. If the partner is itself a client company in the system, a counterpart protocol with the same number is created on its side too.
Rules and messages
- “A compensation needs BOTH sides: a receivable and a payable invoice.”
- “The two sides do not match — the compensated amounts must be equal.”
- “A compensated amount exceeds the open balance of its invoice.”
- “The same invoice was added twice.” — an invoice may appear only once.
- “One of the invoices belongs to another client company.”
Editing and deleting
To edit, click the row's pencil icon; without the right the form is read-only. After saving, the protocol is regenerated with the new content. To delete, use the row's bin icon: depending on your right the compensation is deleted permanently or moved to the trash, and the open balance of the invoices involved is restored.
Example
Sample Ltd. owes Example plc HUF 500,000 on a supplier invoice, and Example plc owes Sample Ltd. HUF 320,000. The accountant adds both invoices and offsets HUF 320,000 on each side. The customer invoice is settled and HUF 180,000 remains open on the supplier invoice; the protocol number is KOMP-2026-0001.