Sale to supplier / buy from customer

my business needs also like my topic

some time we sale to supplier different items or also buy from customer
how can i manage this things

The other business needs to be set up as both a customer and a supplier. Then offset invoices as described here: Offset simultaneous sales and purchase invoices | Manager.

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so i have to creat same customer or supplier ?


Although an old topic but i am sharing my practice for the asked question, hope it will help.
For purchase from customer make journal entry of inventory on hand>item>quantity and price debit and recivables>customer credit. Vice versa for sales to supplier. But there will be an issue in sold item average cost because when you passed the journal entry it will not hit the inventory sales head and the average cost shows in negative value. But it will resolve when you next time purchase the item it will adjust. Or you can also passed an entry any time for negative average cost to effect sales like inventory on hand>item>(qty should zero) amount(which value showing negative in item ledger)debit and sales credit. It will adjust the current balance sheet and pl.

Your suggestion will not be suitable in most cases because every inward and outward should have a proper document in the form of purchase or sales invoice. The balances are then offset by a journal entry affecting the receivable and payable accounts.

Yah you are right but to maintain ledgers, accounting and inventory with less hessle i found this practice best. FYI i am using manager since 9 years and adopt different methods for this type of transactions like creat same supplier and customer, cash sale the jv, credit debit notes but neither practice worked instead currently using practice.

I think that your method gives much more hassle than just creating both a Customer and Supplier for the same entity. You just create for example “Fahad” with all details as a customer and in view you press Copy to Supplier and then have it done. This is quick and easy and only needed where the entity is both. All the normal accounting, reporting, etc. actions can than take place without any problem.

In my opinion this is best solved by Manager recognising an entity can interact with a business in more than one role

  • Customer
  • Supplier
  • Employee
  • Expense claim payer

A contacts / address book with a check box for each role would enable Manager to then produce a statement covering all the entities interaction with the business

@eko i also adopt this practice but unable to send statements to customer or suppliers for reconciliation.
@Patch i think this will create more complication for developers to linking the customers and supplier transactions. Requested to developers, make some efforts on this type of transactions.

Reconciliation is based on bank statements of these Customers not by your company statements. Also, each invoice, payment, receipt can be emailed to a supplier or customer as evidence. So also not sure what you try to achieve.

reconciliation is not always about the flow of money but includes transactions too. and the transactions of goods or services between businesses would not be reflected on a bank statement, for example, adjustments to the ledger in the form of credit/debit notes or journal entries. these are reconciled by comparing the statement of accounts of both business.
in a way reconciliation is just another word for cross-check.
as to how @fahad is doing all this is not clear to me.

When i send ledger of a supplier with purchases and payments made on some dates they can match the transactions and some jvs along with narration of sales, they can matched with their entries. Anyway every body needs are changed to get results in accounting and i am satisfied with this practice to achieve my required reporting.

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I want to echo Patch’s request here. A unified Address Book containing all contacts is a concept that needs to be placed in the ideas category for implementation. I’m sure there are others that have experienced frustration over keying mistakes in the payments/receipts (etc.). A centralized A.B. would solve consistency issues and provide a central location for all contact data maintenance including physical and email addresses. It would also allow for AP/AR netting possibilities in the future. Please place this in the ideas category. If it is already there, sorry I missed it as I did look…

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