Is there someone who might give me an example of a set off proposal. I need to write a memo to a supplier that is also a customer stating that I want to set off the suppliers invoices against invoices we have sent to him as our customer. After the set off my company will still own a certain amount to that business partner. I have no idea how to advise & formalise this between us. It is a vocabulary problem. I need to say what has been said above and I don't know how. I should mention the set of amount (lets say 15000$) and state I would like to set off our mutual claims. Anyone here who knows how to do it? English is not my first language (I am from Croatia) and I have to send this to our supplier in Germany in English language.
unfortunately because this is concerned with international trade I don't believe that you will find the necessary expertise to supply the relevant documents on this site which is concerned primarily with UK based trade and imports and exports from the UK.
Netting off of debts is not recognised financial reporting practice in all jurisdictions and you need to be completely sure that such is valid in your scenario before progressing this.
In addition to local regulations you will need to refer to International Financial Reporting Standards 32 and 39 (IAS32 & IAS39) which deal with offsetting.
It would be beneficial to you to involve your companies accountant in deciding how to progress this and once decided, rather than using the term set off, look up the terms Netting Off and offsetting.
Good luck and sorry that I am unable to offer any additional help in this instance,
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
