Customers can link to suppliers to allow customer refunds, or pay net balances between the accounts.
Linking a supplier account to a customer account in the customer master record, allows a process to refund a customer that may have overpaid, or requires a refund for returned goods, for example.
‘Furniture Inc’ sells office furniture to your business. They had faulty goods that had been paid for and therefore require a refund.
To process the refund, a Purchase Ledger Remittance run would be processed (Customer Reimbursements – GYDE365) to pay then net balance.
‘Office Supplies’ sells office stationery. Your business buys stationery from them and also sells raw materials to them.
The customer account can be linked to the supplier account. To pay the net balance, if the supplier account balance exceeds the customer account balance, the process as per example 1, can be followed.
If the customer account balance exceeds the supplier account balance, payment journals from the General Ledger would be required to pay the difference.