When Customer is also Supplier - Interparty Receivable/ Payable Adjustment

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Adjustments of Parties Having Dual Nature

(Same Party is customer as well as Vendor)

 

For Example

1.       ABC (Customer)  Balance Rs. 10,000               

2.       ABC(Vendor) Balance Rs. 15,000

First adjust Rs.10, 000 of party ABC as a Customer.

First create an account in chart of account named as “Clearing Account” with (Other payable/Receivable A/C) nature to adjust the parties balances having customer as well as vendor behavior. But in Quick Books (QB) /Dynamics AX 2012/D365 it be of Liability type. It will be actually contra asset/liability account

Go to “General Ledger” and create new General Journal and do following entry. Please note don’t forget to mention the name of respective Customer OR supplier while making Entry.

Clearing Account A/C (Dr)                              Rs. 10,000               

ABC (Customer) (Cr.)                                        Rs. 10,000               

In this way all the balance of customer will be transferred to Clearing Account.

Note: First transfer that parties’ (Customer/Vendor) balance having lower balance. Here customer balance is less than vendor. (10,000<15,000)

The next entry will be as follows in Quick books 12.0:

 

ABC (Vendor) A/C  (Dr)                               15,000

Clearing Account A/C (Cr)                                10,000               

Cash/Bank Ac/C                                                            5,000               

In Microsoft Dynamics AX 2012/ D 365 these entries will be like way:

 

1-      ABC (Vendor) A/C    (Dr)               10,000

Clearing Account A/C (Cr)                                      10,000  

            

2-      ABC (Vendor) A/C    (Dr)               5,000

Cash/Bank Ac/C                                         5,000              

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