How to handle a Customer who is also a vendor in NAV

Hi everyone,

How do I handle a customer who is also a Vendor in Navision? I know i can treat them separately, but whats happening is that this particular customer is very hard to get invoices paid. What I want to do is reduce the amount owing from the amount of purchases we make. I guess it would be like a contra situation…

How do I handle the receipts and payments for this?

Thanks in advance [:)]

1st Alternative:

There will be one customer card and one Vendor card for the same party. Create a special ‘Customer Posting group’ and tag a G/L account in the Receivables. Then also create a special ‘Vendor Posting Group’ and tag the same G/L account in Payables. Now, tag the special ‘Customer Posting group’ to the Customer card and the special ‘Vendor posting group’ to the Vendor card.

In this fashion any Purchase made or any sale made, it will go to the same G/L account.

2nd Alternative

Create a Dimension for such a Party. Make it default dimension for both the Customer card and the Vendor Card. Thus through Dimension wise report you can obtain both the purchase/sale or receipt/payment data.

hi Jaideep,

Option 1 does make sense. (Thinking aloud here) so if I set that up, all transactions for that customer/vendor will go into that one G/L account and the taxes shouldn’t be affected… right? Because the taxes posting group is still the same.

I will give it a try and let you know how I go. Thanks for that.

Im also guessing we would be posting the receipts and payments through journals?

In my (LV - Latvia) localisation this feature sits from ver 4.

When the same company is registered as vendor and customer, system must show the field “Balance (LCY) As Customer” in vendor card and the field “Balance (LCY) As Vendor” in customer card. System will suggest user what amounts can be compensated between related vendor and customer card. User will be able to print Compensation Suggestion report and send it out to company for confirmation. While suggested entries are not posted, system will prevent those entries from application with other payments. When company confirms compensation suggestion system will enable user to print Compensation statement report.
Setting up relation between Customer and Vendor card
System will enable Compensations functionality between Customer and Vendor cards which has a common Contact card defined.

Bad news is, that it is not transferable to any other localisation directly, as additional objects are involved, having numbers in LV area, thus not accessible with any other country license. Then, there are too many mods in different standart objects to describe it here, including the holy CU12

However, there are good news, too. While the above wasn’t released, scheme was simple:

  1. calculate the compensation manually;
  2. create a G/L Journal with two lines, setting AccType=Vendor for one and AccType=Customer for another. Bal.Acc.Type Bal.Acc.Code= blank for both
    (this can not be done in one line, system will not allow AccType=Vend + BalAccType=Cust.)
  3. post.

Be aware not to:

  1. mix where compensation goes as Db, where as Cr
  2. forget perform application between these entries

So all ledgers - GL, Customer, Vendor - are hit, both Cards show real balance, no special PGs & GL Accounts needed.

Corrected: I really misleaded you in my answer - it is Bal.Acc.Code, not Type - as Type will always have some value, it can not be blank.
Additionally, if Code is empty, it doesn’t matter which option is selected in Type,

Modris @ 2010-08-15

Hi Modris,

Im trying to setup

"create a G/L Journal with two lines, setting AccType=Vendor for one and AccType=Customer for another. Bal.Acc.Type = blank for both
(this can not be done in one line, system will not allow AccType=Vend + BalAccType=Cust.) "

But it wont allow me set the Bal. Acc type to be blank. It defaults to “G/L account”

Also, what do I set for the General Posting type for each of the account types and the GST prod. posting group?

Hi John,

We do this all the time as we have venues that pay us for ticket sales and offset the venue hire fees, so we never know in advance whether they are paying us or we are paying them.

You can let the Bal. Acc. type default to G/L Accout and it doesn’t do anything, as long as you don’t select a GL account code. GST Prod. Posting Group should be “non-reportable” as this “transaction” is not a supply for GST purposes.

Good luck with it.

Cheers Steve

Hi Steve,

What if I don’t use a vendor card? It was like:

Our customer owes us 1000.00

but we also owe 250.00 to them

So they only paid us 750.00

What i did was I

credit 1000.00 for Customer, then

debit 250.00 (with tax) with gen. posting type as purchase

debit 750.00 for bank deposit

but i’m having an error message that says the combination of Customer and Gen. Posting Type Purchase is not allowed.

Any other way to post this entry?