#OutOfTheBoxBC #46 Consolidation of buyer and vendor balances

It often happens, that the company with which we do business can be both a buyer and a supplier. In this case, you can avoid unnecessary payments or receipts and save on transaction fees by consolidating buyer and vendor balances.

With the release of the Wave 1 2022 update, an improvement has been added to the management of contractors who are both a buyer and a supplier for us. The new function “Consolidation of balances of buyers and suppliers” has been added.

In Business Central, a contract company can be converted into a buyer or supplier by using the “Create as Buyer” or “Create as a Supplier” action on the “Contacts” page.

„Create as buyer”

„Create as supplier “

After applying both of these functions, the type of cooperation will be changed to “several”.

After clicking the link “Type of cooperation” we will see a list of “Type of cooperation of the contact”. Please note that the buyer and supplier have different numbers. This is a condition for displaying the “Balance as a Supplier” field on the Buyers page and the “Balance as a Buyer” field on the Suppliers page.

When a sales order is posted for a contact that is both a vendor and a buyer, the balance value will be displayed in the “Balance as Customer” field on the “Vendor Record” page.

After you post a purchase order for a contact that is both a vendor and a buyer, the balance value will be displayed in the “Balance as Vendor” page on the “Buyer Card” page.

Additionally, on the “Payment log” page, we can use the action “Net buyer / supplier balances” to consolidate the buyer and supplier balances for the company.

This action creates the payment journal lines to which the net customer and vendor balances are linked.

Payment log lines will be automatically created:

This is a very useful new feature, because in previous versions, when there was a company that was both a buyer and supplier, we could only use dimensions to manage them, now we have a new, interesting option.