Deduction

Deduction

Also called 'a compensation' - shall mean a legal action concerning the situation, in which two persons or entities are mutually debtors and creditors towards each other. It allows for one party to deduct its receivable from the debts of the other party, e.g. company A purchased goods from company B amounting to PLN 1 m, and company B earlier purchased from company A the goods amounting to PLN 800,000.