Offsetting (set-off) (Mahsup)
Definition
Settling mutual debts and receivables by deducting one from the other; for example, deducting an overpayment from the next dues.
Offsetting means using a receivable against a debt without any money changing hands. The most common examples in site management are counting a resident's overpayment (advance) towards new dues, or deducting from an owner's dues debt an expense they paid on behalf of the management by decision of the assembly.
Like a collection, an offset should be recorded and its basis (decision, invoice, correspondence) stated; otherwise, unexplained differences arise between the account statement and the cash and bank movements.
In CasaX
In CasaX, offsetting is a separate collection method, tracked in the same ledger as cash, bank transfer, POS and check.
This content is for general information only and is not legal or financial advice. Legislation may change; consult a professional about your specific situation.