Journal entries for collecting fees to customer and paying customer also


I want to ask what is the possible journal entry in NAV when:

  1. My customer owe me 14,040.00

  2. I also owe my customer 10,700.00

  3. The customer only pay me 3,340.00 because they just offset the amount we owe to them.

I created a payment entry on the cash receipt journal:

Db Cr.

Customer 14,040

g/l expense account (G/l posting type is purchase) 10,700

Bank 3,340

But when I try to post the there is an error message that says:

“The combination of Customer and Gen… Posting type Purchase is not allowed”

Can someone suggest what is the best way I can post this entries.



Lee, you already found this thread How to handle a Customer who is also a vendor in NAV , I put this link for other readers.

The trick is, that you need to enter only the payment part through Cash Receipt Journal. (or Payment Journal, depending on balance) Compensation part must be posted through simple G/L Journal, using that 2-line method described in link above. (why 2 not single line - read the link).