My Supplier is also a Customer

[Halcyan]

We have several suppliers to whom we also ship raw materials because we can obtain these materials either faster or cheaper or the supplier cannot obtain the materials at all. One way to process this is to create a work order with an outside process and issue our raw material to the supplier in this manner.

We are exploring shipping the material to the supplier and then creating a debit/credit memo somehow to offset what we owe to the supplier by the value of the material we shipped to them. I can do this with the actual account numbers perhaps by using a GL journal entry, but what would be the best way to reconcile the sub ledgers? Any ideas?

 

[dgillz]

ES or Progression?

Software Training, Implementation, Programming and Support for Macola Progression, Macola ES, Synergy, and Crystal Reports. Check out our Macola tools:

http://www.gainfocus.biz/exceladdin.html

 

[dgillz]

In ES this is a non issue - vendors and customers actually share the same subledger. You can even write a check to a customer if they have a credit balance without having to enter a voucher.

In Progression they have separate subledgers, APOPNFIL and AROPNFIL for vendors and customers respectively. There is no easy way to do this. I would enter a credit memo in AP to reduce the amount you owe them, charging the credit memo to AR Trade. This amount should in theory wipe out your receivable to them. At this point in time, your AP trade should be correct and reconcile, but the AR trade will still show a receivable when in fact nothing is forthcoming. To account for this, you could write of the AR to an allowance account, and make both sides of the entry AR trade. This has zero net effect on the G/L, but removes the A/R.

A T-account flow of this process is attached, something your CFO and auditors should love.

Software Training, Implementation, Programming and Support for Macola Progression, Macola ES, Synergy, and Crystal Reports. Check out our Macola tools: www.gainfocus.biz/exceladdin.html