A) Billing compensation between two Romanian companies
Two Romanian companies can compensate their reciprocal debts or claims by drafting a compensation agreement called an “Order of Compensation”.
This Order of Compensation must be written standard form, and must be accompanied by a record of compensation under the following conditions:
1. for debt amounts and/or claims of less than 10,000 RON which are not 30 days overdue, companies can carry out reciprocal compensation outside of the Institute of Management and Computers.
2. for debt and/or claim amounts over 10,000 RON or which are more than 30 days overdue, companies can carry our reciprocal compensation through the intermediary of the Compensation Service at the Institue of Management and Computers.
B) The compensation procedure between a Romanian company and a non-Romanian company
Current legislation does not impose any restrictions against the compensation of reciprocal debts or claims between a Romanian and non-Romanian company.
It is not necessary to use a standard format to draft the compensation agreement to serve as an accounting document.
Compensation must always be repoprted to the Romanian National Bank, the Statistics Director, who will include this information in the data used to calculate the country's balance of payments.
