Topic: my customer is my supplier

I have a supplier who is also a customer. we are buying from him products and at the same time selling him services.

so, first we bought products for $100. The balance is for the supplier is $100.

and at the same time we sell him services for $30. So, the customer balance is $30.

so at the end we should reach a conclusion that we have to pay $70 (-$100+$30).

is there a way to  automate the reconciliation between customer balances and Supplier balance.

or is there a way that we can have the customer and supplier account linked with each other ? 


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Re: my customer is my supplier

we have to link with debtor_ref and supp_ref. and you can make  both sales and purchase invoice independently.

and create one bank payment for $70 USD

and than we have to customize the program to connect supplier transactions and customer transactions.

here in the bank payment, you need to have the two allocation linked,

and the GL entry also respective to connect with 100 usd and 30 usd transactions. but the bank payment level you can pay $70 and make the entries as per it.  But for GL entries you need to perform two  payment entries to one bank payment.

similar thing i worked it long back. but this is the logic, i created one separate type  as ST_CUSTOMER_SUPPLIER and used to do this all activities.

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3 (edited by DrCard 11/18/2021 11:45:56 am)

Re: my customer is my supplier

Thank you so much for the reply.

As you have done it before, do you have the changes in the files or the code that i need to modify in the debtor_ref, supp_ref  and ST_CUSTOMER_SUPPLIER.

I will be very very thankful if you can provide me with the modification.

Many many thanks.


Re: my customer is my supplier

1. Create 1 Supplier and 1 Customer for the same client.
2. From time to time, pass a Journal entry from one to the other to transfer outstanding balance.
3. Settle by allocation of payments at the transferred account.

Re: my customer is my supplier

Hello Apmuthu,

Thanks for your usual and prompt response.

I am having the same challenge. I have a supplier that is also a Customer and when we do transactions, we do set-off and pay the outstanding depending who is owing.
Now I want a situation where I can have a statement showing me the transactions. i.e. Sales & purchases and now see what the balance is at a given period.

Kindly assist.



Re: my customer is my supplier

I also have the same situation.
For that I have added a Field in the Customer Setup as Related Supplier.
Now I need to have a merged Ledger to show both Transactions in one ledger.

Suggestions are needed to design this ledger.

Re: my customer is my supplier

FA does not support the concept of a customer-supplier in any integrated fashion, but here are two approaches that you might want to consider.

A general approach is use a common dimension for the customer-supplier.  Then you can use the GL transactions report filtered by dimension to see all the activity for the customer and supplier identified by the dimension.  This also works to group several customers or suppliers together for reporting purposes.

If the customer-supplier is primarily a customer and you do not use AP supplier tracking (at least for the customer-supplier), another approach is make the customer-supplier only a customer and allow negative quantities/amounts on the customer invoice.  The negative amounts are the purchases that you make from the customer.  This requires minor changes to the sales entry form and database, but the rest of FA works fine negative amounts and increases your inventory.   This also works for returns that go back to inventory, which conceptually is just like buying stuff from your customer.

Re: my customer is my supplier

1. I am managing it by creating Customer, Supplier and a separate GL account (with the same name), and map the customer/ supplier to this separate GL account instead of default A/R and A/P.
2. I have created a separate GL group and classified all the customer under it.
3. Since step 1 is bit difficult and have chance of user mistakes so i further did a bit customization on the "Add GL account" form (gl_accounts.php) to have two checkboxes for customer/supplier, once the user checks them it automatically creates customer/suppliers along with the GL account and map them to a their individual GL account, this simplifies the step 1 for user.
4. This way all the entries(sales,purchases) of the customer/suppliers are consolidated into the FA's default GL Account transaction report (by filtering the group as created in step 2)

I know the above method is still a way around as the individual modular reports of AR/AP will be useless, but it will still give the user the consolidates figures at-least from the GL. There should me more efficient method of flaging the related parties and quering both sup_trans and debtor_tran tables for the consolidated figures but that approach will require a major change across all AR/AP reports and inquiries.