Streamlining Transactions with Empress's Common Party Accounting

Guides & Tutorials
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Introduction

Welcome to this user-friendly guide on how to navigate the Common Party Accounting feature in Empress. This feature is a powerful tool for managing transactions between two parties who might simultaneously be your customers and suppliers.

Why Use Common Party Accounting?

Imagine you’ve been creating purchase invoices for a supplier, and now you need to create a sales invoice for the same supplier. Or perhaps you’d like to offset a sales invoice against a previous purchase. This is where Common Party Accounting comes into play.

Common Party Accounting allows you to streamline your accounting processes, making it easier to manage complex transactions. This feature is particularly beneficial for businesses with overlapping customers and suppliers.

How to Enable Common Party Accounting

  1. Start by navigating to Accounts Settings.
  2. Look for the Common Party Accounting toggle and turn it on.

Now, let’s create a link between two parties:

  • If the party’s primary role is a supplier, navigate to Supplier Master. Look for Actions and then select Link with Customer.

  • If the party’s primary role is a customer, navigate to Customer Master. Again, look for Actions and then select Link with Supplier.

You’ve now enabled Common Party Accounting and established a link between the two parties.

Creating a Sales Invoice with Common Party Accounting

After linking the parties, you’re ready to create a sales invoice:

  1. Create a sales invoice for the customer you identified as the secondary party in the previous step.

  2. When you submit the sales invoice, Empress will automatically post a Journal Entry. This creates an advance balance for the linked supplier.

  3. You can then use this Journal Entry advance to reconcile it against a purchase invoice.

And that’s it! You’ve successfully used the Common Party Accounting feature to manage a complex transaction between two linked parties.

Conclusion

The Common Party Accounting feature is an effective tool for handling transactions between parties who serve dual roles as your customers and suppliers. By understanding how to use this feature, you can enhance your business’s accounting processes and make them more efficient. For more assistance or information, please refer to our other Empress guides or reach out to our support team.