Link Customer and Vendor

Some businesses have customers who are also their vendors. For instance, Company A provides accounting services to Company B, which deals in food services. Company A, in turn purchases food services from Company B. In this case, we can see how a contact is both a customer as well as a vendor. These kinds of cases can be handled in Zoho Books.

Here’s how you can link your customer and vendor:

Link Customer and Vendor


Record Consolidated Amount

If you are creating an invoice and a bill for a person who is both a customer as well as a vendor, you might want to record the payment as a consolidated amount for the difference in the amount.

Scenario: Patricia creates an invoice for Brandon for 2500 and a bill for 2000. Now, Brandon pays you only the difference amount of 500, deducting the amount that Patricia needs to pay him. In this case, Patricia has to record the full payment of 2500 for the invoice with Deposit To account as a bank account and 2000 for the Bill with Paid Through account as the same bank account. She can then match the deposit feed of 500 in her bank with these payments.

Note:
If the bank’s currency, the transaction’s currency and the base currency of the organization are all different, then you’ll not be able to record payment for the invoice with Deposit To as the appropriate bank account. In such a case, you’ll have to follow the procedure given in this FAQ.

To record a consolidated amount:

Uncategorized Transactions Filter Transactions Matched Transactions

Insight: Before you match any two transactions, you’ll have to ensure that the pending amount is 0. For example, let’s say the consolidated amount is 500 and the deposit amount you have selected is 5000. Now, the pending amount will be 4500 (5000 - 500), for which you’ll have to make an adjustment.

Add Adjustment

To add an adjustment, click + Add Adjustment and select the necessary account to make the adjustment.

Adjustment Amount Matched Transactions

Unmatch Transactions

If you have matched transactions for your linked customers and vendors, you can unmatch them. Here’s how:

Unmatch Transactions

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Customer Credit Limit

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