Sales side
Customer account
Sales invoices increase receivables; collections and returns reduce or settle the open amount.
ERP Guides
Financial transaction tracking
How to Manage Customer and Supplier Accounts
Customer and supplier accounts organise transactions with business partners in one record system. A well-defined account links invoices, collections, payments and due dates to the correct company and document, making open balances easier to track.
Purchasing side
Supplier account
Purchase invoices create payables; payments, returns and offsets change the open amount.
Setting up an account
Record the details that identify the business partner
The account should have a shared identity that prevents transactions from being posted to the wrong company or branch when names are similar. Authorised staff should keep financial terms and contact details current.
Business identity
Legal name, account code, tax details, branch and group relationship.
Contacts and owners
Contacts for invoicing, payment and collection matters.
Commercial terms
Payment terms, pricing/discount terms and transaction currency where applicable.
Account policy
Account status, transaction permissions and basis for any opening balance.
Account transactions
Trace every balance change to its document and counterparty
An account statement should show not only the total balance, but also transaction lines, dates, due dates and remaining amounts. If a transaction is posted to the wrong company, period or currency, later payment and collection tracking can also be misleading.
Invoices and returns
A sales or purchase document creates an account transaction; returns and adjustments remain linked to their supporting document.
Collections and payments
Incoming or outgoing amounts are recorded and matched to the invoice or open item they settle.
Offset and other transactions
Retain the description and basis for authorised offsets, transfers or adjustments under company rules.
Open-item example
A partial collection leaves the remaining receivable visible
Suppose a customer receives an invoice for TRY 10,000 due in 30 days. When the customer pays TRY 6,000, allocate the collection to the invoice and track the remaining TRY 4,000 as open. This shows not only that payment was recorded, but how much of the invoice remains unsettled.
Customer invoice · 30-day terms
Open item status
Invoice amount10,000 TRY
Collection allocated to invoice−6.000 TL
Remaining open amount4.000 TL
This example illustrates open-item tracking only. Accounting entries and tax treatment should follow the company’s approved processes.
Day-to-day review
Use balance and due-date views to guide action
Due items
Review upcoming or overdue invoices with their remaining amounts.
Unallocated payments
Identify collections or payments not yet allocated to a specific invoice or open item.
Currency-specific balances
Show each transaction currency separately and state the reporting rate and date.
Credit and transaction permissions
Route transactions nearing company-defined limits or approval thresholds to the responsible owner.
Account records and day-to-day balance visibility
Organising account records, linking financial transactions to documents, tracking partial payments or collections and reviewing due dates.
Statement reconciliation and balance discrepancy review
Comparing both parties’ statements for the same period and currency, investigating payment or return differences by document and recording the reconciliation result are separate tasks. Those review steps are outside this page’s scope.
Frequently asked questions about account management
What is a customer or supplier account?
It tracks invoices, collections, payments, returns and related financial transactions with a customer or supplier by counterparty and document. The balance reflects recorded transactions for a given date and currency.
What if the same company is both a customer and supplier?
Depending on account and reporting policy, both roles may use one account or linked records. The chosen setup should keep customer and supplier activity distinguishable, apply permissions correctly and identify the counterparty consistently.
Which invoice does a partial collection settle?
Allocate the collection to the relevant invoices or open items according to the agreed process. Define how any unallocated amount is tracked, such as an advance or unapplied receipt.
Can balances in different currencies be added together?
Transaction currencies should be tracked separately. If local-currency equivalents are used for reporting, show the exchange rate and valuation date; adding amounts in different currencies directly does not produce a meaningful balance.