Simplify Your Finances: The Revolution of Customer-Supplier Settlement in Etendo

Until now, many ERPs required manual journal entries or fictitious transactions to balance accounts. But with Etendo, that’s a thing of the past.

The Business Partner Settlement, part of the Financial Extensions Bundle, brings an elegant, automatic, and error-free solution that redefines how to settle accounts for the same customer and supplier in Etendo.

The Double Debt Challenge: A Common Bottleneck

In practice, it’s very common for the same business partner to have invoices both payable and receivable with your company.
The problem arises when you try to offset them: most systems don’t allow mixing purchase and sales invoices in a single operation. This forces you to create cross-payments, manual entries, or fake transactions to “simulate” the cancellation.

The result? More work, more errors, and inflated balance sheets full of unnecessary movements.
Etendo decided to radically simplify this process.

The Etendo Solution: Automatic Compensation Without Financial Transactions

With the Business Partner Settlement, Etendo introduces a new document type that allows you to cancel debts between a customer and supplier without creating any real financial transaction.

When you process the settlement, the system automatically generates an Incoming Payment and an Outgoing Payment, both with a total amount of zero.
This way, the system offsets the pending invoices or credits without affecting the bank account or requiring reconciliation. Everything happens in the background—seamlessly.

Key Benefits for Your Financial Management

• No unnecessary movements: The compensation occurs inside the ERP, without being reflected in financial accounts.
  Say goodbye to fake payments and messy bank statements.
• Clean and transparent process: Etendo uses a GL Item to automatically balance entries.
  The net effect on accounts is zero, while invoices are correctly marked as settled.
• Time savings and fewer errors: Manual entries and duplicate reconciliations are eliminated.
  Your finance team can focus on what really matters: analysis and decision-making, not reconciling accounts.
• Total flexibility: You can start the settlement from Payments, Collections, or Bank Reconciliations, adapting to your real business flow.
  

 How the Process Works

1. Define the partner: Ensure the business partner is configured as both Customer and Supplier, with its corresponding GL Item.
   
2. Create the settlement: Select the invoices and/or credit notes you want to offset.
   
3. Process the document: Etendo automatically generates the zero-amount settlement payments.

Done: The invoices are settled—no financial transactions or bank movements required.

For more information, visit Business Partner Settlement documentation.