AR Invoice and AP invoice settlement

Hello everyone,

We use AX 2009. I have a situation where one of our Vendor is buying back items from my company. Currently, we have set them as a vendor. But, since this vendor is buying items from us, we need to set this company as a customer as well. That is fine and we can do that.

But, when it comes to settle for the AP and AR payment, is there a way in AX 2009 where I can simply apply AR invoice against AP invoce and pay the balance? My idea here is to minimize the changing hands of money. If possible, just settle on the book and pay the remaining.

I am not seeing that functionality, may be that is because of my ignorance to the application. Can someone shed some light on this, if any how can this be done?

I would appreciate your help.

Regards,

Create a general journal to contra the balances and leave the residue amounts where they belong.

Thanks Adam but my controller does not like the idea of journal entry for this. Instead, what I am recommending is to create a negative PO for the item that my company is sending to the vendor back which generates negagive payable against the vendor. Same as purchase return.

Is this something anyone has done to accomplish the result that we are seeking?

I think negative PO will not solve your problem…

any way you need to transfer the balances…

You could not do it over here either due to goods movement legal reporting and tax reasons. This is not a transfer of inventory so do not make it one, otherwise you will confuse everything.

Oh and if they do not like a contra journal for a contra transaction they will be less happy with the consequences of a negative PO [:D]

Adam - If the item is not taxable, does it still need to be treated through sales order in order to avoid the journal entries? I am just trying to to be clear here with all the options.

Please let me know. Thanks for all of your suggestions.

The question is not clear [:D]

If you add it onto a sales order it will be taken into any item movement legal requirements in your locale, and it will impact on all sales reports - but in reality it is not a movement, it is a contra journal of monetary values only.

Thanks for all the inputs to you all.

We have decided to use the AX standard way to resolve this by creating sales order to one of our vendor and treat the vendor as customer as usual.

Regards,