Manually Reconcile Transactions for a Customer or Vendor

Owned by Brad Windecker (Unlicensed)
Last updated: Aug 04, 2014 by Glen Thonis (Unlicensed)

It is common for your customers or vendors to end up with open transactions on account that need to be reconciled together to close them out.

A common example of this is that a customer has an invoice, let's say for $100. Then you posted a Credit Memo to the customer for $100, but you didn't "Copy To" from the Invoice, so the invoice and Credit Memo are not linked together. In this case, you would have a $0 balance on the customer, but you'd still see two open transactions on the customer account (the invoice and the credit). So, what you need to do, is manually reconcile the transactions together to close them out.

This scenario applies to any debits and credits that are on a business partner and need to be reconciled together.

NOTE: When you do a payment, you can link these transactions together by including them on one payment. When you do that, they are instantly reconciled together. So, you only need to follow the steps below if you really want to reconcile transactions together before you have a chance to do it in a payment.

Step-by-step guide

  1. Open the Business Partner Master Data
  2. Drill into the Balance on the top right corner
  3. Click the button called "Internal Reconciliation" in the bottom right corner
    1. This opens the Internal Reconciliation window
  4. Check the boxes for the transactions you want to reconcile
    1. If the transactions have the same amount, and need to be fully reconciled, you are finished
    2. If the transactions have different amounts, then you just need to click into the amount field on the transaction that is larger and change the amount to equal the other transaction
      1. In other words, you can only reconcile equal amounts together
      2. So if you have an invoice for $100 and a credit for ($50), you will need to change the amount in the invoice row to be $50, so that the ($50) balances the $50
      3. You can easily tell if you are out of balance or in balance by looking at the Amount to Reconcile at the bottom
  5. Click OK to post the reconciliation

 

Here is a video explaining the process, and going through an example: