Offsetting AR and AP Balance

knm · 2011-11-02

Hi,

Is there an essy way to offset AR and AP balance without having to use a suspense account, where you have to create Credit Memo on AR and AP to offset the balance?

For example, if you have Customer A and Vendor A where the 2 are the exact same entity in real life.
Customer A: AR = $1,000
Vendor A: AP = $2,000

Since above situation is the same as Payable balance of $1,000, in order to account this situation, I'll have to post Credit Memo on AR and AP.

But Is there a way where I can just use a window to offset the balance?

Please let me know.

Thank you.

Savatage · 2011-11-02

That's how I would do it. 1 entry in purchase journal & 1 entry in sales journal.
1) I know it's right
2) no headaches

I guess you could handle it all in the general journal. but without testing or input from an accountant reviewing the results, It wouldn't be worth the bother, incase I mess it up.

Are you looking to do one Journal line "account type" (vendor) "balance account type" (customer).
I personally never tried it myself.

knm · 2011-11-02

Hi Savatage,

Yes basically, I was thinking of something like Customer/Vendor entry in Journal Entry.
But when I tried it in my test environment, I found out that NAV doesn't let you post the Invoice or Credit Memo with Customer and Vendor (errors out by saying that the balance cannot be negative).

So I guess Credit Memo is the only choice I have?

Thank you.

Savatage · 2011-11-02

Or Payment type..

if the balance account is the same for both entries they should wash each other out.

David_Singleton · 2011-11-02

Don't over complicate things. Take Harry's advise. Unless you are doing 300 of these per day, don't over think it.

Get a test database, try a handful of scenarios and go with the one that leaves the data making the most sense. Its always silly when people will spend hours and hours designing a better process that will save them 10 minutes per month.

Offsetting AR and AP Balance

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