Overview

When a party is both a customer and supplier, iVendNext’s Common Party Accounting links their accounts for smooth transaction handling. This article explains how to enable and use this feature for easier management.

What is Common Party Accounting?

Common Party Accounting is a feature in iVendNext that allows you to link a Customer and a Supplier account for the same party. This is particularly useful when a single entity acts in both roles, enabling you to:

• Create Sales Invoices against a primary supplier.

• Adjust Payments between linked customer and supplier accounts.

• Simplify Reconciliation by managing transactions in a unified manner.

This feature ensures that all transactions are accurately recorded and reconciled, even when a party has dual roles.

Key Benefits of Common Party Accounting

1. Streamlined Transactions: Manage both customer and supplier transactions for the same party in one place.

2. Accurate Reconciliation: Easily reconcile payments and invoices between linked accounts.

3. Flexibility: Handle complex business scenarios where parties act in multiple roles.

4. Improved Reporting: Generate accurate financial reports by consolidating transactions for linked parties.

Step-by-Step Guide to Enabling and Using Common Party Accounting

Let’s walk through the process of enabling and using Common Party Accounting in iVendNext.

1. Enabling Common Party Accounting

Before you can use Common Party Accounting, you need to enable the feature in iVendNext:

1. Navigate to Home > Accounting > Accounts Settings.

2. Enable the Common Party Accounting option.

3. Save the settings.

2. Linking a Customer and Supplier

Once Common Party Accounting is enabled, you can link a customer and supplier account:

1. If the primary role is Supplier:

• Go to the Supplier Master.

• Select the supplier you want to link.

• Click on Actions > Link with Customer.

• Select the corresponding customer account.

2. If the primary role is Customer:

• Go to the Customer Master.

• Select the customer you want to link.

• Click on Actions > Link with Supplier.

• Select the corresponding supplier account.

3. Creating a Sales Invoice Against a Supplier

Once the customer and supplier accounts are linked, you can create a Sales Invoice against the supplier:

1. Navigate to Home > Accounting > Accounts Receivable > Sales Invoice.

2. Click on New to create a new Sales Invoice.

3. Select the Customer that was linked to the supplier.

4. Fill in the details of the Sales Invoice (e.g., items, quantities, prices).

5. Submit the Sales Invoice.

4. Automatically Creating a Journal Entry

When you submit the Sales Invoice, iVendNext will automatically create a Journal Entry to record the transaction. This Journal Entry will create an advance balance against the linked supplier, which can be used to reconcile against future Purchase Invoices.

5. Reconciling Against a Purchase Invoice

To reconcile the advance balance against a Purchase Invoice:

1. Navigate to Home > Accounting > Accounts Payable > Purchase Invoice.

2. Create a new Purchase Invoice for the linked supplier.

3. Allocate the advance balance created by the Sales Invoice against the Purchase Invoice.

4. Submit the Purchase Invoice.

Common Use Cases for Common Party Accounting

Common Party Accounting is used in a variety of scenarios. Here are some common use cases:

1. Supplier Also Acts as a Customer

Scenario: A supplier provides raw materials to your company, and you also sell finished goods back to the same supplier.

• Link Accounts: Link the supplier and customer accounts.

• Create Sales Invoice: Create a Sales Invoice for the finished goods sold to the supplier.

• Reconcile Payments: Use the advance balance to reconcile against future Purchase Invoices.

2. Customer Also Acts as a Supplier

Scenario: A customer purchases goods from your company, and you also buy services from the same customer.

• Link Accounts: Link the customer and supplier accounts.

• Create Purchase Invoice: Create a Purchase Invoice for the services bought from the customer.

• Reconcile Payments: Use the advance balance to reconcile against future Sales Invoices.

3. Managing Inter-Company Transactions

Scenario: Transactions between two companies within the same group where one company acts as both a customer and a supplier.

• Link Accounts: Link the customer and supplier accounts for both companies.

• Create Transactions: Create Sales and Purchase Invoices as needed.

• Reconcile Balances: Use Common Party Accounting to reconcile inter-company balances.

Advanced Features of Common Party Accounting

iVendNext offers several advanced features to enhance the functionality of Common Party Accounting:

1. Automatic Journal Entries:

• Automatically create Journal Entries to record advance balances.

• This ensures accurate financial records without manual intervention.

2. Flexible Reconciliation:

• Easily reconcile payments and invoices between linked accounts.

• This simplifies the reconciliation process for complex transactions.

3. Unified Reporting:

• Generate consolidated financial reports for linked parties.

• This provides a clear view of all transactions involving the same party.