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Customer to Customer, Vendor to Vendor and Customer to Vendor clearing Process

Let assume XYZ is a company. It deals business with ABC Company. Since ABC is a group company it has sister company also name is KLM Company.   ABC and its sister (KLM) Company’s both supplies Materials to XYZ Company as well customer to XYZ Company.


Now there is a business requirement is:

  1. A.      The scenario is ABC & KLM both are Customers to XYZ Company
  2. 1.      Whatever the debit balances lying with KLM Company should be knockoff with Credit balance of ABC Company.
  1. B.      The scenario is ABC & KLM both are Vendors to XYZ Company
  2. 1.      Whatever the Credit Balance lying with ABC Company should be knockoff with Debit balance of KLM company
  3. C.      The scenario is ABC is Customer and KLM is Vendor to XYZ Company
  4. 1.      Whatever the Credit Balance lying with ABC Company should be knockoff with Debit Balance of  KLM company

Scenario A:

ABC Group has decided to pass JV (Journal Voucher) internally and informed to XYZ Company to knockout the balances between both the Companies. (ABC & KLM)

Customer to Customer clearing

Now check the balances in the transaction code FBL5N

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Now we need to knockoff the both the balances via manual clearing, transaction code is F-32

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Click on Process open items

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Since it shows only single customer (KLM Company) we need to select one more customer also (ABC Company)

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Provide another customer (ABC Company) and click on Process open items

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Click on Process open items

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Now we can able to view both the customer line items.

Please simulate like below screen.

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Now post the document

Go to FB03 and display the document number

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Scenario B:


Vendor to Vendor Clearing

Now check the balances in the transaction code FBL1N

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Now we need to knockoff the both the balances via manual clearing, transaction code is F-44

(Please note, earlier we have cleared customer open items by proving both the customer codes. Now for vendor clearing we are going to provide both the document numbers with reference to Vendor codes)

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Select Document number radio button like above screen shot and click on Process open items

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Click on Process Open items

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For another Vendor document number go to Menu Edit->Select more

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Change the vendor code from 0030000010 to 0030000011 and choose Document number radio button like above screen shot and click on Process open items

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Click on Process open items

Now both the vendor document numbers are showing

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Click on Simulate and Save

Go to transaction code FB03 to display the document number

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Scenario C:


Customer to Vendor Clearing


FBL5N transaction code to verify the Customer line item Balance display

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To clear Customer and Vendor open items go to transaction code F-32 or F-44

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Click on Process open items

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Till now it shows customer document only to get vendor document also go to menu Edit->Select more

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Provide Vendor code and change account type to K like above screen and click on Process open items

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Click on Simulate and post the document

Go to FB03 and display the document number

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Please note, all the payment or receipts have taken standard payment only whereas there is feasibility to clear payments/receipts through partial or Residual also.


I hope you will understand.

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