Definicja percentage-based offset method

An offset method whereby you pay the deductible payables, minus (a) all of the invoices for chargeable components carried forward from the last payment run and (b) a percentage of the invoices for chargeable components posted since the last payment run.

Example

You have deductible payables from a subcontractor totaling JPY 20,000; you have invoiced the same subcontractor for chargeable components totaling JPY 18,000. You deduct 60% of the latter (JPY 10,800) from the deductible accounts payable, which means that you owe the subcontractor JPY 9,2000.