Consolidating Customer & Vendor Balances
#NettingCustomerVendor, #D365Finance, #D365FO
Last updated
#NettingCustomerVendor, #D365Finance, #D365FO
Last updated
Checking the new functionality of D365 Finance (D365FO) - Net Customer and Vendor Balances.
Currently, this feature is a preview feature in D365 Finance version 10.0.38 and is available only in the Sandbox environment (as of today 06-Jan-2024).
Please make sure the feature has been enabled
When your organization engages with a company that serves both as a Customer and a Vendor, there's a remarkable opportunity to streamline financial transactions and optimize savings. By consolidating the balances between your organization and the company, you can eliminate unnecessary payments or receipts, effectively minimizing transaction fees. This approach creates a win-win scenario, enhancing financial management efficiency while reducing costs significantly.
The Net Customer and Vendor Balance functionality serves as the solution to achieve this objective seamlessly.
The bridging account is for netting purposes.
Path: GL > Journal Setup > Journal Name
The purpose of the Netting Agreement is to enable the management of paired customer and vendor accounts for netting within a specified and effective timeframe.
Path: Account Payable > Payments > Netting > Netting agreement
Journal name (1): select the Customer and Vendor netting journal name.
Account (2): select a bridging account that is used for netting balance purposes.
Parties (3): configure the mapping Customer Account and Vendor Account within the effective timeframe. This configuration will be used in the Netting functionality.
In our organization, have a company named NTD Asia Group that serves as both a Customer and a Vendor within our systems.
The current Customer Balance and Vendor Balance:
Customer: 100003350 - NTD Asia Group - Balance: 110,000,000 VND.
Vendor : 202439 - NTD Asia Group - Balance: 30,000,000 VND.
I will run the Customer and vendor balance netting to net off the balances between our customers and vendors.
Path: Account Payable > Payments > Netting > Then click the menu Customer and vendor balance netting ==> This functionality will be run automatically.
The system will automatically calculate the minimal amount between the Customer invoice balance and the Vendor invoice balance as the netting amount.
The subgrid will show all the pairs of customer accounts and vendor accounts that are available for netting.
After that, we need to select a paired record, and then select Create Netting.
In the Netting journal, we need to Mark Select the Open Customer Invoice and Open Vendor Invoice first. Then, we must input the Netting Date and click Post as the final step.
Check the posted netting
Finally, we will check the Customer and Vendor balance after netting.
The balances after netting:
Customer: 100003350 - NTD Asia Group - Balance: 80,000,000 VND
Vendor : 202439 - NTD Asia Group - Balance: 0 VND
For more details at the link.
Thank you & Hopping well. [NTD]yns.asia ...invite me a cup. ☕ Thank you. ❤️
