INTRODUCTION
This article describes how to reduce a customer's outstanding credit balance when you have the following modules registered:
• Receivables Management in Microsoft Dynamics GP and in Microsoft Business Solutions - Great Plains
• Payables Management in Microsoft Dynamics GP and in Microsoft Business Solutions - Great Plains
MORE INFORMATION
If you have Receivables Management and Payables Management registered, you can have a customer who is also a vendor. If you owe a vendor and if the vendor also owes you as a customer, you can reduce the customer’s outstanding credit balance.
For example, customer A buys item B from you. Customer A is also vendor A. You buy item C from vendor A. Customer A owes you 100 dollars for item B. Additionally, you owe vendor A 90 dollars for item C.
Instead of paying the vendor and accepting a payment from the customer, you can reduce the customer's outstanding credit balance. To do this, follow these steps:
1. |
Create a credit memo for the Receivables Management invoice of the customer who is also a vendor. To do this, follow these steps:
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2. |
Create a credit memo for the Payables Management invoice of the vendor who is also a customer. To do this, follow these steps:
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Note If you have Customer/Vendor Consolidations in Microsoft Dynamics GP registered, Microsoft Dynamics GP can process these steps automatically. Using Customer/Vendor Consolidations, you can consolidate balances in Payables and Receivables for a single company when you work with that company as both a Customer and a Vendor. You can assign relationships between existing Customers and Vendors and then apply open debit and credit documents against each other to consolidate the current balances.