How to handle a transaction where a supplier is also a customer

This can happen where a supplier will invoice you for goods/services they provide to your organisation, but you also invoice them e.g. for room hire or advertising in a publication you produce.

Option 1

If you pay the supplier when they invoice you, and they pay you when you invoice them, you can simply process customer invoices (to them) and supplier invoices (to you) as you would usually for any supplier/customer. This is often the simplest option.

Option 2

Amounts owed are deducted from the amounts paid between you and the supplier who is also a customer.

If deductions for any amounts outstanding are made from the payment amount, then we'd recommend that when you go to upload your bank statements into ExpensePlus, you split the transaction in question as this will simplify bank matching and processing.

Example

You owe a supplier £200, but they owe you £180. In this scenario, you should go ahead and make a payment of £20.

On the bank reconciliation screen, when this £20 'paid out' transaction appears, split the bank transaction:

• add £200 as a paid out transaction
• add £180 as a paid in transaction

The bank statement balance won't change.

Then simply match the £180 incoming amount as a customer invoice payment to you, and the £200 outgoing amount as an invoice to pay.

To better understand the Bank Reconciliation module, please view the module overview video here.