• From: Hong Kong
  • Registered: 06/02/2010
  • Posts: 29

Topic: How can I transfer a customer payment from customer A to customer B?

Hi all,

The situation is like this. I have two customers, they are good friend.

Customer A have balance amount need to be settled to me. Just say $3000.
Customer B always leave some credit to our bank account for future order use. Just say I have US$10000 from him not yet allocated.

Customer B would like to cover the $3000 of Customer A by debiting his $10000.

How can I implement this in Front Accounting correctly?

Hope to have someone to help me on this. Thanks a lot.

Kevin

2 Reply by apmuthu (edited by apmuthu 08/10/2016 02:20:42 pm)

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: How can I transfer a customer payment from customer A to customer B?

You can allocate customer payment to only their own bills in FA.

To allocate one customer's payment to another's bills, pass a journal voucher:
By Customer A Credit $ 3000
To Customer B Debit  $ 3000
The above must have supporting documents from both parties agreeing to the above transfer on your books of account.


Then allocate the $3000/- from Customer A to their own bill.

apmuthu's Website

  • From: Hong Kong
  • Registered: 06/02/2010
  • Posts: 29

Re: How can I transfer a customer payment from customer A to customer B?

Thanks a lot for reply.

How can I issue a journal voucher to credit Customer A and debit Customer B? Do you mean to enter this in "Journal Entry"? But I don't know how to specify the account code to credit Customer A and debit Customer B in "Journal Entry". Would you give me some hints to implement this? Thank you so much.

  • From: Hong Kong
  • Registered: 06/02/2010
  • Posts: 29

Re: How can I transfer a customer payment from customer A to customer B?

apmuthu wrote:

You can allocate customer payment to only their own bills in FA.

To allocate one customer's payment to another's bills, pass a journal voucher:
By Customer A Credit $ 3000
To Customer B Debit  $ 3000
The above must have supporting documents from both parties agreeing to the above transfer on your books of account.


Then allocate the $3000/- from Customer A to their own bill.

I tried to figure it out in these few days, but still cannot find the way out. In "Journal entry", I can only choose "Debtors control account", I know that all payment from customer are recorded in this account. But I can't select/specify a customer in "Journal entry". Could you give me some hints? Thanks a lot.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: How can I transfer a customer payment from customer A to customer B?

Then have an intermediate Suspense / Cash account to do so:

# Dummy Cash Deposit
By Customer A Credit $ 3000
To Cash / Suspense Dr $ 3000
# Dummy Contra Refund / Customer B "payment"
By Cash Credit B $ 3000
To Customer B Debit  $ 3000
# Now allocate from Customer B's "payment" to his Invoice.

apmuthu's Website

  • From: Hong Kong
  • Registered: 06/02/2010
  • Posts: 29

Re: How can I transfer a customer payment from customer A to customer B?

Thank you so much. Just implemented it and seems everything is fine now.