Customers and Suppliers — Complete User Guide — Two Accounts Web

Comprehensive guide for managing customers, suppliers, their currency settings, opening balances, control accounts, and related reports

Table of Contents

1. Overview
2. Enabling the Tabs via Customize Menu
3. System Accounts & Setup
   • Control Accounts
   • Default Accounts Receivable / Payable
   • Customer-Related Settings
   • Supplier-Related Settings
4. Field-by-Field Guide — Customer
5. Field-by-Field Guide — Supplier
6. Creating a Customer
7. Creating a Supplier
8. Opening Balances
   • Setting an Accounts Receivable Opening Balance
   • Setting an Accounts Payable Opening Balance
   • Opening Balance Currency Auto-Populate
9. Reports
   • Customer and Supplier Listing
   • Customer Summary
   • Supplier Summary
   • Customer Statement (Transactions)
   • Supplier Statement (Transactions)
   • Unpaid Invoices with Aging
   • Tax Reports
10. Currency and Accounting Impact
    • How Currency Flows
    • Foreign Currency Revaluation
11. Sample Data and Report Output
    • Sample Data Setup
    • Transactions
    • Customer Summary Output
    • Supplier Summary Output
    • Aging Report Output
    • Statement of Transactions Output
12. Accounting Regulation Compliance

1. Overview

Customers and Suppliers are the two core counterparty types in the system:

• Customers — the entities that purchase goods or services from your business. They generate Accounts Receivable when you invoice them.
• Suppliers — the entities from which your business purchases goods or services. They generate Accounts Payable when they invoice you.

Both share a similar structure but serve opposite accounting roles:

2. Enabling the Tabs via Customize Menu

Customers and Suppliers are visible by default in the navigation bar. To verify or customize:

1. Open the Customize Menu by clicking the customize button on the top-right of the navigation bar
2. Find "Customers" and "Suppliers" in the list
3. Toggle to Visible if not already enabled
4. Click Save or Apply

Additional settings become available under Settings when these tabs are enabled:

Under the Customers tab:

• Control Account for Customers — manage custom AR control accounts
• Customer Dashboards — configure customer-facing dashboards
• Billable Expenses — enable billable expense tracking for customers
• Email Template for Customer Statement — configure statement email

Under the Suppliers tab:

• Control Account for Suppliers — manage custom AP control accounts

3. System Accounts & Setup

3.1 Control Accounts

Control Accounts allow grouping of Customers or Suppliers under specific Balance Sheet lines. For example, "Domestic Customers" and "International Customers" can each have their own AR control account on the Balance Sheet.

Control Account for Customers (Control Account for Customers):

Control Account for Suppliers — same structure, mirroring the supplier side.

3.2 Default Accounts Receivable / Payable

When no custom control account is assigned, the system uses singleton default accounts:

• Accounts Receivable — the default AR account, auto-created. Default name: "Accounts Receivable".
• Accounts Payable — the default AP account, auto-created. Default name: "Accounts Payable".

Both can be renamed, regrouped, or repositioned via Settings > Chart of Accounts.

Their Cash Flow Statement category is Operating Activities — changes in AR/AP appear in the "Changes in Working Capital" section of the Indirect Method CFS.

3.3 Customer-Related Settings

Billable Expenses (Settings > Billable Expenses): When enabled, Customer lines on transactions can carry a Billable Expense flag. This tracks expenses that should be re-invoiced to the customer. The billable expense account appears on the Balance Sheet as an asset (amounts recoverable from customers).

Customer Dashboards (Settings > Customer Dashboards): Create custom dashboard views for individual customers, showing their transaction history, outstanding balances, and key metrics in a customer-facing portal.

Email Template for Customer Statement (Settings > Email Templates): Configure the email subject and body for sending customer statements. The email template supports merge tags for customer name, balance, statement period, etc.

3.4 Supplier-Related Settings

Control Account for Suppliers (Settings > Control Accounts > Suppliers): Manage custom AP control accounts for grouping suppliers on the Balance Sheet.

4. Field-by-Field Guide — Customer

Copying from Supplier

You can create a Customer by copying from an existing Supplier. The system copies: Name, Billing Address (from Supplier's Address), Code, Currency, Custom Fields, and Email.

5. Field-by-Field Guide — Supplier

Key Differences from Customer

• Suppliers have a single Address field instead of separate Billing and Delivery addresses
• Suppliers do not have Default Due Date Days or Default Hourly Rate fields
• Suppliers can be copied from Customers (and vice versa)

6. Creating a Customer

1. Go to Customers > New Customer
2. Enter the Name (required)
3. Optionally enter: Code, BIN, Credit Limit
4. Select Currency if the customer transacts in a foreign currency
5. Enter Billing Address, Delivery Address, and Email
6. Assign to a Division if needed
7. Select a Control Account to group this customer under a specific AR control account
8. Enable Default Due Date Days to set automatic payment terms
9. If Billable Time is used, enable Default Hourly Rate
10. Add Custom Fields as needed
11. Save

7. Creating a Supplier

1. Go to Suppliers > New Supplier
2. Enter the Name (required)
3. Optionally enter: Code, BIN, Credit Limit
4. Select Currency if the supplier invoices in a foreign currency
5. Enter Address and Email
6. Assign to a Division if needed
7. Select a Control Account for grouping under a specific AP control account
8. Add Custom Fields as needed
9. Save

8. Opening Balances

8.1 Setting an Accounts Receivable Opening Balance

1. Go to Settings > Opening Balances > Add
2. Select an Account that has Customers enabled (Accounts Receivable, Control Account for Customers, Billable Expenses, Billable Time, or Withholding Tax Receivable)
3. The Customer field appears — select the customer
4. Set the Amount and Debit/Credit direction (Debit for AR = customer owes you)
5. If the customer has a foreign currency, select the Currency and enter Amount in Currency and Exchange Rate
6. Save

8.2 Setting an Accounts Payable Opening Balance

1. Go to Settings > Opening Balances > Add
2. Select an Account that has Suppliers enabled (Accounts Payable, Control Account for Suppliers, or Withholding Tax Payable)
3. The Supplier field appears — select the supplier
4. Set the Amount and Debit/Credit direction (Credit for AP = you owe the supplier)
5. If the supplier has a foreign currency, select the Currency and enter details
6. Save

8.3 Opening Balance Currency Auto-Populate

When creating an opening balance entry for AR or AP accounts, the system automatically populates the Currency field from the selected Customer or Supplier record when the Currency field is empty. On edit, the saved Currency value is preserved — if the entity's Currency changes later, update the Opening Balance entry manually. The Currency field can be manually changed after auto-population.

Currency Matching Rule

For entity types that have their own Currency setting (Customer, Supplier), the Opening Balance Entry's Currency shall match the entity's Currency to ensure consistent display across all reports and account statements.

For full details on Opening Balance currency handling, including auto-population for all entity types (Bank Account, Employee, Special Account, Capital Account) and base amount computation, refer to the Opening Balance User Guide.

GL Posting Logic for AR/AP Opening Balances

When an opening balance entry is saved for an AR or AP account:

1. The system resolves the entity's Control Account (custom or default)
2. A GL transaction is created with the AR/AP account, linked to the Customer or Supplier
3. The account currency is set to the Customer's or Supplier's Currency
4. A second GL transaction is created as a contra to Retained Earnings (for Balance Sheet accounts)
5. Both entries are flagged as opening balance entries for clear audit trail

9. Reports

9.1 Customer and Supplier Listing

Customers list columns: Code, Name, Email, Control Account, Division, Billing Address, Delivery Address, plus transaction counts (Receipts, Payments, Sales Quotes, Sales Orders, Sales Invoices, Credit Notes, Delivery Notes), Qty to Deliver, Uninvoiced (billable time/expenses), Accounts Receivable (total outstanding, clickable to drill into transactions), Withholding Tax Receivable, Status (Paid/Unpaid/Overpaid), and Available Credit.

Suppliers list columns: Code, Name, Email, Control Account, Division, Address, transaction counts, Qty to Receive, Accounts Payable (total outstanding, clickable), Withholding Tax Payable, Status, and Available Credit.

Available Credit calculation:

Customer Available Credit = Customer Credit Limit − Accounts Receivable balance
Supplier Available Credit = Supplier Credit Limit − Accounts Payable balance

If available credit is negative, the entity has exceeded their credit limit.

9.2 Customer Summary

Navigate to Reports > Customer Summary. This report shows a summarized view of all customer activity within a date range.

The report can be filtered by Division. If customers use multiple currencies, the report groups by currency with separate opening/closing balances per currency.

9.3 Supplier Summary

Navigate to Reports > Supplier Summary. Mirrors the Customer Summary but for the AP side.

9.4 Customer Statement (Transactions)

Navigate to Reports > Customer Statements (Transactions). Select a specific customer and date range.

The statement shows an Opening Balance row at the top (transactions before the From date), then lists all transactions within the period in date order. All amounts are displayed in the customer's currency. An optional email template is available for sending the statement to the customer.

9.5 Supplier Statement (Transactions)

Navigate to Reports > Supplier Statements (Transactions). Same structure as the Customer Statement but for supplier AP transactions. Shows Debit (AP decreases) and Credit (AP increases) in the supplier's currency.

9.6 Unpaid Invoices with Aging

Navigate to Reports > Customer Statements (Unpaid Invoices) or Supplier Statements (Unpaid Invoices).

This report shows all unpaid invoices as at a specified date with aging categories:

Columns: Date, Invoice Number, Description, Invoice Total, Overdue Days, Balance Due.

The customer version supports sending via email. Both include a Copy To button — Customer version can copy to a Receipt, Supplier version can copy to a Payment — allowing quick recording of cash settlement.

9.7 Tax Reports

• Taxable Sales per Customer — shows sales transactions grouped by customer for VAT reporting
• Taxable Purchases per Supplier — shows purchase transactions grouped by supplier for VAT reporting
• Mushak reports — various VAT reports reference Customers (for sales) and Suppliers (for purchases) by their BIN numbers

10. Currency and Accounting Impact

10.1 How Currency Flows

The Customer's or Supplier's Currency setting drives the account currency for all GL transactions involving that entity:

Customer has Currency = USD
         │
         ▼
Sales Invoice: 1,000.00 USD @ rate 110 → GL entries:
  Transaction amount = 1,000.00 USD  (invoice amount)
  Transaction currency = USD          (from document)
  Account currency = USD              (from customer's Currency setting)
  Amount in customer currency = 1,000.00 USD
  Amount in base currency = 110,000.00 BDT  (converted at exchange rate)

Receipt against invoice: 1,000.00 USD @ rate 110 → same pattern:
  Account currency = USD              (from customer's Currency)
  Amount in customer currency = 1,000.00 USD
  Amount in base currency = 110,000.00 BDT

This dual-currency tracking allows the system to:

• Display customer statements in the customer's currency (using the customer currency amount)
• Report consolidated totals in base currency (using the base currency amount)
• Revalue outstanding AR/AP at period-end using closing exchange rates

10.2 Foreign Currency Revaluation

At period end, the system can revalue foreign currency AR and AP balances. The revaluation:

1. Calculates the difference between the present value (at historical rates) and the closing rate value for each FC-denominated AR/AP transaction
2. Creates an automatic GL entry for the FX gain or loss
3. Posts the FX difference to the Currency Gains/Losses P&L account

Example: AR of 1,000 USD was recorded at rate 110 (110,000 BDT)
Closing rate = 115
Revaluation = 1,000 × (115 − 110) = 5,000 BDT gain
GL entry:
    Dr  Accounts Receivable         5,000 BDT
        Cr  Currency Gains/Losses              5,000 BDT

This revaluation appears in the Cash Flow Statement under "Foreign exchange gains (losses)" in the Operating Activities — Indirect Method adjustments section.

11. Sample Data and Report Output

11.1 Sample Data Setup

11.2 Transactions

11.3 Customer Summary Output

Report Parameters: FromDate = 01-Jan-2026, ToDate = 30-Jun-2026

Verification:

ABC Retail:  100,000 + 50,000 − 30,000 − 5,000 = 115,000 ✓
Global Inc:     0 + 220,000 − 0 − 0 = 220,000 ✓

11.4 Supplier Summary Output

Verification:

XYZ Trading:  50,000 + 25,000 − 20,000 − 3,000 = 52,000 ✓

11.5 Aging Report Output

Report Parameters: As at 30-Jun-2026

Customer Aging — ABC Retail Ltd:

(Opening balance aged based on earliest transaction date; current invoice shown with days overdue. Unpaid portion after receipts/credit notes reductions reflected in Balance Due.)

11.6 Statement of Transactions Output

Report Parameters: Customer = ABC Retail Ltd, From = 01-Jan-2026, To = 30-Jun-2026

Verification: Opening 100,000 + Debits 50,000 − Credits 35,000 = 115,000 ✓

12. Accounting Regulation Compliance

12.1 IAS 21 — The Effects of Changes in Foreign Exchange Rates

Requirement (§23): Monetary items (including AR and AP) denominated in a foreign currency shall be translated at the closing rate at the end of each reporting period. Exchange differences shall be recognized in profit or loss.

How this system complies: The system records each AR and AP transaction in the entity's currency and in the base currency. At period end, the Foreign Exchange Revaluation process calculates the difference between the closing rate value and the recorded base currency amount, posting the FX gain or loss to the Currency Gains/Losses account.

12.2 IFRS 15 — Revenue from Contracts with Customers

Requirement (§9): Revenue is recognized when control of goods or services transfers to the customer. The transaction price is measured as the amount the customer expects to pay.

How this system complies: Sales Invoices create AR entries that represent the amount the customer owes. Customer credit limits help manage credit risk. The Customer Summary report tracks all revenue and receipts per customer.

12.3 IAS 32 — Financial Instruments: Presentation

Requirement (§42): A financial asset (AR) shall be derecognized when the contractual rights to the cash flows expire or are settled.

How this system complies: When a customer pays, the Receipt reduces AR via the GL posting. When a Credit Note is issued, AR is reduced. The system correctly derecognizes the receivable upon settlement.

12.4 IAS 1 — Presentation of Financial Statements

Requirement (§54): Trade and other receivables and payables must be presented as separate line items on the Balance Sheet.

How this system complies: AR and AP appear as separate line items under Current Assets and Current Liabilities respectively (or under their configured Balance Sheet groups). Custom control accounts allow further disaggregation (e.g., Domestic AR, Export AR).

12.5 IFRS 7 — Financial Instruments: Disclosures

Requirement (§33-35): Credit risk and aging of financial assets must be disclosed.

How this system complies: The Unpaid Invoices report provides aging analysis with 30-day buckets (Current, 1-30, 31-60, 61-90, 90+). The Customer and Supplier listings show available credit and outstanding balances, enabling credit risk assessment.

12.6 DR = CR Verification for Sample Data

Opening Balance — ABC Retail Ltd (AR):
    Dr  Accounts Receivable                 100,000.00
        Cr  Retained Earnings                           100,000.00
    Sum: +100,000 + (−100,000) = 0 ✓

Sales Invoice — ABC Retail Ltd:
    Dr  Accounts Receivable                  50,000.00
        Cr  Revenue                                       50,000.00
    Sum: +50,000 + (−50,000) = 0 ✓

Receipt — ABC Retail Ltd:
    Dr  Cash at Bank                         30,000.00
        Cr  Accounts Receivable                            30,000.00
    Sum: +30,000 + (−30,000) = 0 ✓

Credit Note — ABC Retail Ltd:
    Dr  Revenue                               5,000.00
        Cr  Accounts Receivable                             5,000.00
    Sum: +5,000 + (−5,000) = 0 ✓

FC Sales Invoice — Global Imports Inc ($2,000 @ 110):
    Dr  Accounts Receivable (USD)     2,000.00 USD  (220,000.00 BDT)
        Cr  Revenue (USD)                          2,000.00 USD  (220,000.00 BDT)
    Sum: $2,000 + (−$2,000) = 0 USD  |  220,000 + (−220,000) = 0 BDT ✓

12.7 Relevant but Not Applicable

• IFRS 16 (Leases): Customer/Supplier management covers trade receivables and payables, not lease arrangements.
• IAS 16 (PP&E): Supplier transactions can include fixed asset purchases (via Purchase Invoice lines), but the Supplier record itself is not a fixed asset.
• NBR VAT Act 2012 — Mushak 6.1 / 6.2 / 6.8: Customers and Suppliers appear in various VAT reports through their BIN numbers and transaction history. The Credit Note and Debit Note guides cover the specific VAT reporting of adjustments.

End of Customers and Suppliers Guide