11/17/2017 Offseting between vendor and customer balance via F110 | SAP Blogs

Products
Products Industries
Industries Support
Support Training
Training Community
Community Developer
Developer Partner
Partner

About
About

Home / Community / Blogs + Actions

Offseting between vendor and customer

balance via F110
July 8, 2014 | 1,387 Views |

Kee Seng (John) CHIN

more by this author

FIN (Finance)
f110 | financial | sap erp financials

share
0 share
0 tweet share
3 like
0

Follow

Purpose

https://blogs.sap.com/2014/07/08/offseting-between-vendor-and-customer-balance-via-f110/ 1/10
11/17/2017 Offseting between vendor and customer balance via F110 | SAP Blogs

If a vendor is also a customer, from the perspective of making vendor

payment, it is possible to offset the outgoing payment amount from the
existing amount owed to the customer when running the F110 Automatic
Payment Run.

Prerequisite settings in vendor/customer master

Vendor Master

1 Input Customer Information in Vendor Master

1. The customer number is used by the payment and dunning programs

for clearing open items. For line item display, the link to the customer
line items is established using this number.

If you require clearing between the customer and vendor, the following
requirements must be met:

The customer number must have been entered in the corresponding

vendor master record.

The vendor number must have been entered in the corresponding

customer master record which we will do in the next step.

The fields Clrg with vend. or Clrg with cust. must have been selected
in both master records.

2. For clearing with customer setting, the screen is as shown below. As for
clearing with vendor setting will cover in next step.

https://blogs.sap.com/2014/07/08/offseting-between-vendor-and-customer-balance-via-f110/ 2/10
11/17/2017 Offseting between vendor and customer balance via F110 | SAP Blogs

When you try to activate the Clrg with cust. Indicator, SAP displays the follow
message where the clearing account 10201734 is the customer number.

Customer master

2 Input Vendor Information in Customer Master

1. Specifies an alphanumeric key that uniquely identifies the vendor or creditor

in the SAP system.

2. Then turn on the Clearing with vendor indicator in order to complete the
settings in respective master in order to allow clearing with customer during

https://blogs.sap.com/2014/07/08/offseting-between-vendor-and-customer-balance-via-f110/ 3/10
11/17/2017 Offseting between vendor and customer balance via F110 | SAP Blogs

automatic payment process.

Clearing between vendor and customer via F110

1 Analyse Vendor and Customer Balance

1. Analyse the open item balance for vendor, that the total amount
outstanding on vendor side must be greater than the balance
outstanding on customer side. This is required in order for clearing with
customer to work.

Vendor Open item

https://blogs.sap.com/2014/07/08/offseting-between-vendor-and-customer-balance-via-f110/ 4/10
11/17/2017 Offseting between vendor and customer balance via F110 | SAP Blogs

Please take note, the item with debit balance where the document number is
620004610 as shown above, should be excluded from automatic payment in the
parameter set up (shown in next step) as SAP throws out error during payment
run.

2. Check the outstanding balance on the customer side where the amount
is 2,200 very much less than the vendor outstanding amount.

Customer Open Item

https://blogs.sap.com/2014/07/08/offseting-between-vendor-and-customer-balance-via-f110/ 5/10
11/17/2017 Offseting between vendor and customer balance via F110 | SAP Blogs

3. Together with the settings both in vendor and customer master we discussed
previously being fulfilled then we can proceed to next step for payment
settlement between the vendor and customer.

2 Automatic Payment Settings and Payment Run

1. In the F110 (Automatic Outgoing Payment) parameter settings as shown

below, both vendor and customer must be input in order to do offsetting
payment between a vendor and customer. Both vendor and customer
numbers must be entered besides other settings.

https://blogs.sap.com/2014/07/08/offseting-between-vendor-and-customer-balance-via-f110/ 6/10
11/17/2017 Offseting between vendor and customer balance via F110 | SAP Blogs

2. The result of payment proposal list shows the amount details of all open
items from vendor and corresponding customer highlighted in red colour box.

https://blogs.sap.com/2014/07/08/offseting-between-vendor-and-customer-balance-via-f110/ 7/10
11/17/2017 Offseting between vendor and customer balance via F110 | SAP Blogs

3. Display payment proposal job log

4. Display payment job log

5. Actual document posted

https://blogs.sap.com/2014/07/08/offseting-between-vendor-and-customer-balance-via-f110/ 8/10
11/17/2017 Offseting between vendor and customer balance via F110 | SAP Blogs

Alert Moderator

1 Comment

Bohdan Petrushchak

August 20, 2014 at 1:00 pm

Hello Kee Seng,

Thanks for an interesting guide on offsetting between vendor and customer accounts.

I would like to note that you should also add the following small remark concerning the
business scenario described above.

As far as I understood, you use APP in order to post payments (not to generate payment
orders). In this case, document type specified in configuration of payment method
(Document type for payment in Payment methods for Country) should allow
https://blogs.sap.com/2014/07/08/offseting-between-vendor-and-customer-balance-via-f110/ 9/10
11/17/2017 Offseting between vendor and customer balance via F110 | SAP Blogs

postings to both customer and vendor accounts. Otherwise, youll encounter errors
during APP run.

On the other hand, if somebody would like to use this scenario for generation of payment
orders, the document type specified in settings of the posting rule for outgoing payments
(Global Settings for Electronic Bank Statement -> Define Posting Rules) should
also allow postings to both account types vendors and customers.

Best regards,

The Wirtschaftsmann

Add Comment

Share & Follow

Privacy Terms of Use Legal Disclosure Copyright Trademark Sitemap Newsletter

https://blogs.sap.com/2014/07/08/offseting-between-vendor-and-customer-balance-via-f110/ 10/10