Save time by setting up Customer/Vendor Consolidations in Dynamics GP

In most businesses, we come across the situation where a vendor is become a customer to us and vice versa. In these types of cases, we will need to consolidate the customer and vendor activity so that we get a true view of balance. In this article, I'm going to show you how you can consolidate vendor and customer invoice using Microsoft Dynamics GP in 2 parts. 

Setting up Customer/Vendor Consolidations

Path: MSDGP > Tools > Setup > Company > Customer/Vendor Setup

1.   Assign a Suspense Account that will act as an offset account between the Receivables and Payables. This account is used whenever the customer/vendor transactions are posted as offset account. This account should not have balance at all time.

2.   Assign Default Vendor and Customer Classes to be mapped when a vendor or customer is auto-created using Customer/Vendor Maintenance.
3.   Select [Relationships] to map the Vendor and Customer Relationship.

4.   In this example, assume we have Customer – KEL001 who is also vendor to us. Once we enter KEL001 in Customer ID, click Create Vendor, Vendor ID – KEL001 will be auto-created.

 

5.   Select [OK] to save the setting.

To Consolidate 2 transactions from Payables and Receivables

Payables for $1000 for the Vendor KEL001,

Receivables for $1000 for the Customer KEL001.

We need to consolidate the documents using Customer/Vendor Transactions. 

Path: Transactions > Sales > Customer/Vendor Transactions

1.   Once the Customer ID KEL001 is entered and select the Consolidate Documents, it’ll list all transactions for KEL001 that includes both Payables and Receivables.

2.   If Transfer to Payables is selected, Only the Receivables transactions would be displayed and If Transfer to Receivables is selected, only Payables transactions would be displayed.

3.   Now, select the Consolidate Documents select the required documents by marking document and post it, it’d update both Receivables and Payables documents with the prefix mentioned in Setup.

4.   The account distribution for invoices consolidation would be as follows:-

 

In RM Module:

Default Suspense A/c                     Dr   $1000

 

   To Accounts Receivable A/c            CR      $1000

 

In PM Module:

Accounts Payable A/c                     Dr   $1000 

   To Default Suspense A/c                  CR     $1000

 

 

5.   To check the document status at Inquiry > Transaction by Vendor screen.

6.   Clicking the Description Expansion button would open the related Receivables Document Inquiry window as below.

Original post from 

https://community.dynamics.com/gp/b/erpsoftwareblog/archive/2016/05/20/customer-vendor-consolidations-in-microsoft-dynamics-gp