By Mitali Deshpande on April 14, 2020
Intermediate
For a scenario, when a Customer in a manufacturing company is also the Supplier for the same company, we need to have a common ledger to show the user's accounting where his buying/selling transactions are recorded.

In ideal scenarios in ERPNext, as of now there are no feasible ways where the Customer and Supplier can be created and common ledger can be assigned.

Even if the Supplier and Customer are created, their Creditor/Debtor accounts are linked separately.

In such a case, if the transactions have to be balanced, we need to create a separate Customer in the Customer master as well as a Supplier for Supplier master in the same account, we use the Knock-off mechanism where the transaction summary can be balanced using a Journal Entry instead of Payment Entry.

  • Create a supplier:

  • Create a Customer
Once the transactions are created for accounting against the Supplier and Customer, for instance, a Purchase Invoice and a Sales Invoice are created :



For balancing the transactions, since there is no single ledger that links the Supplier as well as the Customer or there is no link between the Buying and the Selling transaction, we can create a Journal Entry in this case to link the Purchase and the Sales side and the difference amount can be adjusted using the Bank account. [This feature is just like Double entry accounting to balance the debit and credit side for a single user.]


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