When another company acts as both a customer and a vendor, it is possible to transfer transaction balances from Accounts Receivable to Accounts Payable, for the purpose of matching and offsetting transactions there. You may also transfer a balance from one customer to another.
To perform a transaction of this type, use the checkboxes to select one or more outstanding transactions, either all debits or all credits. If you want to transfer a mix of debits and credits, it is best to first apply them together so that you are left with only one type. Then from the New dropdown button, choose Transfer. This menu choice will only be active if you have selected one or more transactions, and you have user security rights to Transfer Balance in the General Ledger section.
This opens a Transfer transaction window for this customer and a Transfer Balance equal to the sum of all selected transactions.
You can choose either a different customer or a vendor to transfer this balance, and a Memo to provide information for new transactions. It may be interesting to enter the customer/vendor numbers into the memo, so that it is easier to audit who this transaction belongs to from any of AP, AR or GL.
After entering a customer or vendor code, the other field will become inaccessible.
Whether you choose to transfer to a customer or a vendor, only one new transaction will be created in that target place. For this reason, some information such as references from the original transactions will not get copied over to the new, because you may have selected more than one transaction to transfer.
When you click OK, this brings up the General Ledger transaction window. The Accounts Receivable and Accounts Payable control accounts will be updated, with debit and credit amounts depending on which transactions were selected to transfer.
Continuing from this window will post the transfer and create a Credit/Debit Memo with Transfer as the Reference, to apply to each selected transaction and net all Balances to zero.
The selected vendor or customer will have a single new AP/AR transaction created, either a Credit or a Debit depending on the net value of source transactions. You may choose to apply/link it to an existing transaction to offset, or otherwise handle it in the same way as any other Credit/Debit transaction.
