Tips for reconciling reports with inter-entity bill back transactions

Inter-entity bill back transactions might impact your reconciliations when you run the following reports:

• AP Ledger

• Vendor Aging

• AR Ledger

• Customer Aging

Here are tips to help make your reconciliations easier.

Use entity-mapped customers and vendors exclusively for bill back transactions

We recommend that you set up vendors and customers to use exclusively for inter-entity bill back transactions only. This will help you identify your bill back transactions when you run reports and distinguish bill back transactions from other transactions.

Create bill back customer and vendor types to filter when you run reports

1. Create a customer type specific for bill back customers.

   How to create a customer type.

   1. Go to Accounts Receivable > Setup > Customers and select Add (circle) next to Types.

   2. Enter a Name for the customer type.

      For example, you can name it Bill back customers.

   3. Leave the Status set to Active.

      You cannot assign customers to customer types that are Inactive.

   4. Select Save.

2. Assign this customer type to all bill back customers associated with an entity.

   How to assign a customer type.

   1. Go to Accounts Receivable > All > Customers.

   2. Find the customer associated with an entity.

   3. Select More actions > Edit at the end of the row.

   4. On the Additional information tab, select the bill back customer type from the Type ID dropdown.

   5. Select Save.

   6. Repeat these steps for each customer associated with an entity.

3. Create a vendor type specific for bill back vendors.

   How to create a vendor type.

   1. Go to Accounts Payable > Setup > Vendors and select Add (circle) next to Types.

   2. Enter a Name for the vendor type.

      For example, you can name it Bill back vendors.

   3. Leave the Status set to Active.

      (You cannot assign vendors to vendor types that are Inactive.)

   4. Select Save.

4. Assign this vendor type to all bill back vendors associated with an entity.

   How to assign a vendor type.

   1. Go to Accounts Payable > All > Vendors.

   2. Find the bill back vendor.

   3. Select More actions > Edit at the end of the row.

   4. On the Additional information tab, select the bill back vendor type from the Type ID dropdown.

   5. Select Save.

   6. Repeat these steps for each vendor associated with an entity.

1. Create a customer type specific for bill back customers.

   How to create a customer type.

   1. Go to Accounts Receivable > Setup > Customers and select Add (circle) next to Types.

   2. Enter a Name for the customer type.

      For example, you can name it Bill back customers.

   3. Leave the Status set to Active.

      You cannot assign customers to customer types that are Inactive.

   4. Select Save.

2. Assign this customer type to all bill back customers associated with an entity.

   How to assign a customer type.

   1. Go to Accounts Receivable > All > Customers.

   2. Select Edit beside the bill back customer.
   3. On the Additional information tab, select the bill back customer type from the Type ID dropdown.

   4. Select Save.

   5. Repeat these steps for each customer associated with an entity.

3. Create a vendor type specific for bill back vendors.

   How to create a vendor type.

   1. Go to Accounts Payable > Setup > Vendors and select Add (circle) next to Types.

   2. Enter a Name for the vendor type.

      For example, you can name it Bill back vendors.

   3. Leave the Status set to Active.

      (You cannot assign vendors to vendor types that are Inactive.)

   4. Select Save.

4. Assign this vendor type to all bill back vendors associated with an entity.

   How to assign a vendor type.

   1. Go to Accounts Payable > All > Vendors.

   2. Find the bill back vendor.
   3. Select Edit.
   4. On the Additional information tab, select the bill back vendor type from the Type ID dropdown.

   5. Select Save.

   6. Repeat these steps for each vendor associated with an entity.

When you run an aging or ledger report, use these customer and vendor types to filter for inter-entity bill back transactions.

Use filters to subtract bill back transactions from your reconciliation amount

Follow these steps for the report that you want to reconcile.

1. Run the report as usual to find the overall report balance.

2. Run the report again, this time filtering for the bill back vendor or customer type only.

   This gives you the net amount for inter-entity bill back transactions.

3. Subtract the net amount for inter-entity bill back transactions from the overall report balance.

   This total should match the amount to reconcile in either the Accounts Payable or Accounts Receivable configured GL offset accounts, depending on the report you run.