Vendor/Customer Balances Netting off Process

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Posted on by Magno Pereira

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Hi all,

Do you know what is the best approach to implement a vendor/customer balance netting off process? Or if there is any thinking in the roadmap or either an idea to vote.

Business requirement

We deal with some partners in both sales and purchase transactions, and therefore, those partners become both customers and vendors respectively. Such entities may be having both debits (Representing sales transactions) and credits (representing a purchase transaction) balances. Our company may have a requirement to make a single payment to any such partner (representing the net amount of the two separate accounts), instead of two separate payment transactions.

Thank you in advance!

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Ludwig Reinhard Microsoft Employee on at

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Hi Magno,

There is a standard functionality in the AR module.

Its the reimbursement functionality that allows you transferring a negative customer balance to a linked vendor account.

Once this is done you can pay the vendor as usual in your 'normal' vendor payment run.

Best regards,

Ludwig

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SREEPRIYA KOLAGANI on at

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Hi Magno,

Agree with Ludwig. Here is the available document to learn more on Reimbursement process : https://docs.microsoft.com/en-us/dynamics365/finance/accounts-receivable/reimburse-customers#:~:text=When%20you%20create%20reimbursement%20transactions,that%20corresponds%20to%20the%20customer.

Regards,

Sreepriya.

Kindly mark this thread 'Yes' if this is answered your query which may help other community members in this forum.

Note: This post is my own opinion and does not necessarily reflect the opinion or view of my company.

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Magno Pereira 2,435 Moderator on at

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Thank you Ludwig! I will do some test using the Customer Reimburse.

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Magno Pereira 2,435 Moderator on at

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Hi Ludwig,

I already did a few tests, and I'd like to share with you some thoughts.

TEST A - Netting off OK

Customer A Balance -100$

Vendor A Balance 1000$

After creating a customer reimbursement transaction the customer A was with a balance of zero, and vendor A with balance of 1100$ (as expected)

TEST B - Netting off not works

Customer A Balance 100$

Vendor A Balance 1000$

The feature customer reimbursement does not work because the customer transaction is not a credit

However, we would like to move forward and transfer the balance to the vendor account. It means to have a zero customer balance and a 900$ vendor balance.

How do you see this happening?

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Magno Pereira 2,435 Moderator on at

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Hi Ludwig,

Do you have another way how to do the netting off, considering the examples above?

Thank you in advance.

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Magno Pereira 2,435 Moderator on at

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Hi Magno,

You are right.

D365FO does not support your scenario B.

If you want to deduct the $100 from the vendor payment then you would have to post the amount from the customer to the vendor account manually.

Alternatively, you can make use of something like PowerAutomate to get this automated for you but the standard feature that you used won't do that transfer without further modification.

Best regards,

Ludwig

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Magno Pereira 2,435 Moderator on at

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We will do customization to run a routine like a payment proposal to give us the netting off and create the transactions automatically.

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Ludwig Reinhard Microsoft Employee on at

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Great.

Is there anything else the community can do for you in this respect or can we verify the answers and get this thread completed?

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Magno Pereira 2,435 Moderator on at

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That's all, Ludwig. Thank you for your support.

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Anton Wannstrom 5 on at

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I stumbled upon this Hungarian/Polish feature that does exactly this.

docs.microsoft.com/.../emea-compensation-customer-vendor-transactions

However you have to set Allow multiple transactions within one voucher to YES or have a journal with a number sequence that allows you to manually change the voucher number. Then you can set an offset account and create two vouchers instead of one.

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