--- title: "Offsetting: Calculation Example, Statement, and Settlement of Mutual Debts" country: KZ lang: en author: Сапа Т.И. (https://buhgpt.kz/authors/sapa-ti) date: 2026-10-13 canonical: https://buhgpt.kz/suraqtar/vzaimozachet-esep-mysal-akt-i-pogashenie-vstrechnyh-dolgo-en source: BuhGPT --- # Offsetting: Calculation Example, Statement, and Settlement of Mutual Debts > **TL;DR:** In 2026, offsetting is carried out within the lesser of the mutual debts and is confirmed by a document specifying the obligations, the offset amount, and the balance; if information on accounts receivable is requested by the tax authority, mutual settlements are confirmed by --- In 2026, offsetting is carried out within the lesser of the mutual debts and is confirmed by a document specifying the obligations, the offset amount, and the balance; if information on accounts receivable is requested by the tax authority, mutual settlements are confirmed by a joint reconciliation statement or documents confirming the settlements (Article 186 of the Tax Code of the Republic of Kazakhstan). For example, if Beta LLP owes Alpha LLP 1 000 000 tenge and Alpha owes Beta 600 000 tenge, the offset will amount to 600 000 tenge. After the offset, Beta will still owe Alpha 400 000 tenge, while Alpha’s debt will be settled in full. In Alpha’s accounting records, the offset is recorded with the entry Dr 3310 “Short-term accounts payable to suppliers and contractors” — Cr 1210 “Short-term accounts receivable from buyers and customers” for 600 000 tenge. What offsetting is and when it is carried out Offsetting, or “mutual settlement,” is used when two parties simultaneously have obligations to each other. Mutual debts are settled in an agreed amount not exceeding the lesser debt. If the amounts differ, after the offset one party retains an outstanding balance, which is settled in accordance with the agreement. Before documenting the transaction, the accountant must compare the accounting data of both parties and check three circumstances: - substance of the obligations. The agreements and source documents must make it clear which specific mutual debts the parties are offsetting; - performance period. The payment deadlines under both agreements should be checked, and the date as of which the debt amounts were determined should be recorded; - terms of the agreements. The offsetting procedure must not conflict with restrictions expressly established by the agreements concluded by the parties. The debt amounts should be confirmed by accounting registers, agreements, and source documents. A joint reconciliation statement is especially important if confirmation of accounts receivable is requested by the tax authority: the debtor submits a mutual settlements reconciliation statement or, if it cannot be prepared as of the date the notice is received, documents confirming settlements with the taxpayer (Article 186 of the Tax Code of the Republic of Kazakhstan). Ordinary contractual offsetting should not be confused with the collection of tax debt from a debtor’s funds. In such a collection, the tax authority may issue a collection order within the confirmed accounts receivable amount. A mutual settlements reconciliation statement, a tax audit report, or a court decision that has entered into legal force serves as the basis for confirmation (Article 186 of the Tax Code of the Republic of Kazakhstan). Offsetting example with accounting entries (calculation example) Let us use the same terms: Alpha LLP sold goods to Beta LLP for 1 000 000 tenge, while Beta provided services to Alpha for 600 000 tenge. The amounts in the example are treated as the final amounts of the parties’ obligations under the relevant source documents. Accounting by Alpha LLP: - Shipment of goods to the buyer: Dr 1210 — Cr 6010 for 1 000 000 tenge. VAT and the write-off of cost are recorded as separate entries based on the sales documents and accounting data. - Receipt of services from the supplier: Dr the relevant expense account — Cr 3310 for 600 000 tenge. The expense account is selected based on the purpose of the service received and the entity’s working chart of accounts. - Offsetting based on the signed document: Dr 3310 — Cr 1210 for 600 000 tenge. - After the offset, Beta LLP’s accounts receivable payable to Alpha LLP amount to 400 000 tenge and continue to be recorded in account 1210. Accounting by Beta LLP: - Receipt of goods: Dr the relevant inventory account — Cr 3310 for 1 000 000 tenge. The specific inventory account is determined according to the type of goods acquired. - Provision of services: Dr 1210 — Cr 6010 for 600 000 tenge. Entries related to the sale are recorded based on source documents and the adopted accounting policy. - Offsetting: Dr 3310 — Cr 1210 for 600 000 tenge. - After the offset, Beta LLP’s accounts payable to Alpha LLP amount to 400 000 tenge and continue to be recorded in account 3310. The offsetting transaction settles accounts receivable and accounts payable that have already been recognized in the accounting records. The grounds for the initial recognition of the sale of goods and receipt of services remain in the relevant agreements and source documents. The account codes in the example should be reconciled with the working chart of accounts and accounting policy of the specific entity. How to document offsetting: documents and procedure The documents must make it possible to determine between which parties, under which agreements, and in what amount the mutual debts are terminated. The working procedure can be arranged as follows: - Reconciliation of settlements. Compare the data of both parties as of the selected date. In the reconciliation statement, show the debt separately for each agreement and settlement document. When confirming accounts receivable pursuant to a tax authority notice, a joint reconciliation statement is expressly provided for by Article 186 of the Tax Code of the Republic of Kazakhstan; if it cannot be prepared as of the date the notice is received, documents confirming mutual settlements are submitted (Article 186 of the Tax Code of the Republic of Kazakhstan). - Offsetting document. Specify the names and details of the parties, agreements and source documents, the amounts of each debt before the offset, the offset amount, the transaction date, and the outstanding balances. The document is signed by persons having the appropriate authority. - Recognition in accounting records. Based on the signed document, reduce the mutual accounts receivable and accounts payable by the same amount. - Balance control. After processing the transaction, check the balances by counterparty, agreement, and settlement document. The balance must match the amount specified in the offsetting document. A bilateral document makes it possible to record the amounts agreed by the parties and eliminate discrepancies during subsequent reconciliation. The wording of the document must correspond to the actual obligations: a debt that is absent from one party’s registers or is not supported by an agreement and source documents cannot be included in the offset. A separate transaction is the transfer of debt between agreements with the same counterparty. In such a transfer, the total debt owed to the counterparty or the counterparty’s debt to the entity remains unchanged, but the settlement analytics change. Therefore, the original and new agreements must be selected accurately in the document and accounting system. A transfer between agreements should not be described as the settlement of two mutual debts. Offsetting in 1C for Kazakhstan “Trade Management for Kazakhstan.” The “Debt Offsetting” document is used to process the transaction. Before completing it, check the counterparty, agreements, currency, and settlement items. The amount on the accounts receivable side of the document must match the amount on the accounts payable side. Where to find it: the availability and location of the command depend on the installed release, interface settings, and user permissions. Search for the document by the name “Debt Offsetting” using the configuration’s navigation and command search. “Accounting for Kazakhstan.” In the current 3.0.74.x release line, the “Debt Adjustment” document is used for debt transactions. Depending on the transaction types available in the specific release, it is used for the following scenarios: - offsetting mutual accounts receivable and accounts payable for the same counterparty; - transferring debt between agreements or settlement documents of the same counterparty; - writing off debt on a basis provided for by the accounting policy; - adjusting settlement analytics with mandatory verification of the generated accounting entries; - reviewing posted adjustments during settlement reconciliation and internal control. The name of the transaction type and the set of fields may vary depending on the release and infobase settings. After posting the document, the accountant should open the posting results and reconcile the amounts, accounts, and analytics with the signed offsetting document. Common errors in 1C and what they mean: - “The agreement currency does not match the document currency; the agreement will be cleared”: the settlement currency in the selected agreement differs from the document currency. The currencies of the agreement, document, and debt must be reconciled. - “Completion is possible only in an unposted document”: the automatic completion command was invoked for a posted document. To change the data, the document must first be changed to unposted status if the user has the appropriate permissions. - “Counterparty agreement not selected”: the agreement has not been completed for the settlement line. First select the agreement and then the settlement document available for it. - The parties’ amounts do not match: the tabular sections contain different amounts. Before posting, the same settlement amount must be set for the accounts receivable and accounts payable. Questions and answers Can offsetting be carried out for the full amount if the mutual debts are unequal? — The offset is limited to the lesser of the two agreed amounts. In the article’s example, of the debts of 1 000 000 and 600 000 tenge, 600 000 tenge is settled by offsetting, leaving a balance of 400 000 tenge. Is a new invoice required when offsetting? — The offsetting document formalizes the settlement of the debt and does not replace the documents for the original sale of goods or services. Source documents and invoices for the original transactions are accounted for separately from the offsetting document. Can debts under agreements in different currencies be offset? — The document must specify the agreed amounts of the obligations and the procedure for matching them. If the accounting system does not allow an agreement to be selected because the currencies do not match, the document data should first be brought into line with the agreement currencies and settlement terms, without arbitrarily changing the debt amount. Which accounting entry is used when offsetting with a buyer that is also a supplier? — In the example provided, the entry Dr 3310 — Cr 1210 is used for the offset amount. If settlements are recorded in other accounts or subaccounts, the entry is made using the accounts in which the mutual debts are actually recorded. How does an offsetting statement differ from a reconciliation statement? — A reconciliation statement compares the parties’ settlement data as of a specific date. An offsetting document records which mutual obligations are settled and in what amount. When confirming accounts receivable pursuant to a tax authority notice, a joint reconciliation statement or documents confirming mutual settlements are used (Article 186 of the Tax Code of the Republic of Kazakhstan). Can the tax authority collect tax debt from a debtor’s accounts? — After the measures provided for by Article 186 of the Tax Code of the Republic of Kazakhstan, the tax authority is entitled to levy execution on funds in the debtor’s bank accounts within the confirmed accounts receivable amount. Such collection is made under a collection order and does not constitute ordinary offsetting between counterparties (Article 186 of the Tax Code of the Republic of Kazakhstan). Where can offsetting be found in 1C? — Use the command search for “Debt Offsetting” or “Debt Adjustment.” The specific interface section depends on the configuration, release, section settings, and user permissions. Sources - Tax Code of the Republic of Kazakhstan, 2026 version: Article 186 “Collection of a taxpayer’s (tax agent’s) tax debt from the accounts of its debtors.” --- _BuhGPT — ИИ-помощник для бухгалтеров Казахстана: https://buhgpt.kz_