Customer/Vendor Consolidation

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Posted on by HeatherU

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Hi Everyone, Is anyone using Customer/Vendor consolidations to net AP and AR invoices? I am having trouble understanding the logic behind this feature of GP. It seems that the credit memos that are created in both Modules are actually hitting the Customer and Vendor cards and netting so that when you look at customer and vendor period and YTD numbers they are skewed by the CM transactions. I was having a nard time balancing Sales last month and it turns out it was the 2 CM transactions I did through Customer/Vendor Consolidations. They hit a clearing account but were treated as a true sales CM transaction and not misc CM transaction. Therefore, my Revenue in the GL did not tie to the period sales report.
Any thoughts on why this logic was built in to this? If someone could explain the logic behind this module, I would appreciate it.
We have one customer that wants to do this netting monthly so I need to figure out a workable solution.
Thanks so much!

Heather Upton Accounting Supervisor Midland Information Resources Davenport IA 563-359-3696 X7754

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HeatherU 205 on at

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RE: Customer/Vendor Consolidation

Here is a link to the Connect post to vote.

I have an excel document I created as a workaround. If you want send me an email at hupton@elandersamericas.com. I can walk you through it. It's multiple steps..but gets the job done.

Thanks.

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Kristie McNulty 1,008 on at

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RE: Customer/Vendor Consolidation

Hi Heather - would you happen to have a link to the suggestion you posted so I can vote on it? I was unable to locate it through the dashboard or search features. Or, if you opened the issue and it's closed, please also let me know and I'll stop searching.

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RE: Customer/Vendor Consolidation

The other thing I have noticed that makes this un-usable is that it takes the AP and AR account from Customer and Vendor Maintenance.

So if I create an AP transaction going to the GL control account 00-2000 and a second transaction going to 10-2000 it will not relieve those accounts when I transfer the AP invoices to receivables but rather will look at the Vendor card to establish an account to use. My accounts will not tie out.

If I create an AP transaction using 00-2000 as the control account when I pay it 00-2000 will be debited. it does not matter what account is on the Vendor card. I do not understand what this process would work any differently.

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RE: Customer/Vendor Consolidation

Heather, are you able to supply your workaround?

Thank you!

Abby

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HeatherU 205 on at

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RE: Customer/Vendor Consolidation

I am sorry for the delay. Month end kind of drug on into this week too. My A/P clerk just got back from vacation so I will have her jot down our workaround.

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HeatherU 205 on at

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RE: Customer/Vendor Consolidation

Leslie, I posted this to the Microsoft Connect site. Thanks for the kudos. It helps to know my thoughts on this were making sense to someone.

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L Vail 65,271 on at

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RE: Customer/Vendor Consolidation

HeatherU

You make and Excellent point. Bravo for bringing it up. I haven't looked at the process or how to resolve it, but I think you are probably right on.

Please report this as an enhancement suggestion on Microsoft Connect (get started here: (connect.microsoft.com/intro) so that we can vote on it. If it works as described, you are absolutely right (IMHO) about the way it should work.

Kind regards,

Leslie

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HeatherU 205 on at

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RE: Customer/Vendor Consolidation

Hi Soma, I understand this process and I originally tested it. It does work as you describe in the document. However, there is one issue that I do not understand with this and for this reason we cannot use it. When the Credit Memo is created to clear off the balance, it is created as a Sale. Because of this, this amount hits the Customer Analysis. It causes the Customer to have a DR or CR to their account which affects their month and YTD balances. In your example, the $1000.00 would reduce the amount of Sales shown for that customer. Why would you want to do that? You really did make that $1000.00 sale to that customer but the CM reduces that. In effect it "dings" the customer portion and adds to the payable/vendor. The period sales analysis then does not match the Sales GL Accounts. If you use a suspense account you will not hit sales. In my opinion the transaction should create a MISC Credit memo. All you really want to do is pass that "payment" or consolidation to clear the other. Does that make any sense? My original message asked for the accounting clarification and reasoning for it being done as a Sales and not just a Misc. Credit Memo. I have not really seen that answer yet. If it weren't for that particular piece, we would definitely be using this feature. Please let know if there is some reasoning behind this that I am not understanding. Thanks much!

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soma 24,410 on at

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RE: Customer/Vendor Consolidation

Have a look on the below link.

community.dynamics.com/.../customer-47-vendor-transactions.aspx

Hope this helps!!!

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HeatherU 205 on at

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RE: Customer/Vendor Consolidation

Yes, we do have a workaround in place. It is a multistep process. We only have 1 customer/vendor that we need to do this with at this time. I am in a tight month end close schedule right now but I will speak to my AP clerk and get something back to you next week of our process. I didn't want you to think I passed this over.

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