Counterparties and suppliers: how to keep a directory without errors

A detailed guide on how to properly maintain the counterparty directory in Torgsoft to ensure accurate accounting and documents, based on technical documentation and user requests.

1. Understanding the concept of a "Counterparty" in Torgsoft

In the Torgsoft system, the term "Counterparty" is a general one. It is any person (individual or legal entity) with whom a goods-and-cash balance is maintained. In the directory, they are distinguished by the Partnership Type and icons:

• Buyers (Customers) — marked with a "cart" icon.

• Suppliers — marked with a "box" icon.

• Supplier-Buyer (mixed type) — marked with a "box with a cart" icon. These are counterparties that can both supply goods and purchase them.

2. Creating and setting up a supplier profile

To avoid errors in financial documents and tax invoices, it is critically important to fill in all details when creating the profile.

Path: Settings — Counterparty (or Settings — Supplier) — Add button.

Key tabs to complete:

1. "General" tab:

•    Name. Enter the official name that should appear in documents.

•    Currency. Be sure to specify the currency used for settlements. If you purchase goods in USD but set UAH, the balance with partners will be incorrect.

•    Contacts. Phone and email are important for automatically sending orders to the supplier.

2. "Additional" tab (Critical for documents):

•    Partnership Type. Select "Supplier". This affects the generation of the counterparty barcode (for suppliers it does not include the license number).

•    Liability Type. Choose from the list (Private Individual, Sole Proprietorship, Legal Entity).

•    Tax invoice details. Fill in the Tax ID, VAT certificate number, and EDRPOU. If these fields are empty, you will not be able to correctly generate a tax invoice or a power of attorney.

•    Residency. If the supplier is a non-resident, clear the corresponding checkbox and specify the country of registration.

3. "Bank Account" tab:

•    Add the supplier’s bank details (MFO, account number). This will allow them to be filled in automatically when creating payment orders.

4. "Opening Balances" tab:

•    If you are not starting from scratch, enter the current debt (Type: "I owe" or "Owed to me"). Be sure to specify the debt currency.

3. Preventing duplicates and errors

A common mistake is creating duplicate counterparties (for example, "LLC Products" and "Products LLC"), which leads to confusion in the balance (accounts receivable on one, accounts payable on the other).

• How to fix duplicates. Use the "Merge with selected" function.

1. Select the correct counterparty (the one to keep).

2. Click Select for merge.

3. Select the counterparty that should be removed.

4. Click Merge with selected. The entire history (invoices, payments) will be transferred to the main counterparty. Important: This action cannot be undone.

• Do not delete; deactivate instead. If you no longer work with a supplier but there is transaction history, do not delete them (the system will not allow it if there are documents). Instead, click "Deactivate counterparty". They will be moved to the "Inactive" tab and will not interfere in selection lists, but the history will remain.

4. Working with documents and payments

To avoid discrepancies in the "Balance with partners" report:

1. Linking payments to invoices. When creating a financial document (a payment to a supplier), it is advisable to do it via the Goods Receipt form — the Pay supplier button, or via the Goods Receipt Register. Then the payment will be strictly linked to a specific invoice. Common mistake: Creating a "free" financial document without linking. This may result in an invoice showing as unpaid even though the money was sent.

2. Currency operations. If goods are received in foreign currency but you pay in UAH, be sure to use the correct currency settings in the counterparty profile and in the receipt. The software will automatically recalculate the cross-rate if it is entered in the currency directory.

3. Returning goods. Process via Document — Return goods to supplier. Use the Select from list of deliveries button to write off goods from the specific batch at the correct purchase price.

5. Analysis and control

Regularly check the settlement status to detect data entry errors:

• Balance with partners. (Payments — Balance with partners). Use the "Partnership Type" and "Currency" filters. If you see unexpected figures, open the Settlement Card (the button that looks like a sheet with a list).

• Purchase price analysis. In the product card or in the receipt invoice, there is an All prices button (Delivery prices of the product) that shows the history of supplier price changes.

Summary. Checklist to avoid errors

1. [ ] All fields in the "Tax invoice details" section are completed in the counterparty profile.

2. [ ] The correct settlement currency is specified.

3. [ ] Duplicate counterparties are merged; outdated ones are deactivated.

4. [ ] Payments are created based on receipt invoices, not as separate documents (where possible).

5. [ ] The "Supplier internal code" is used in the product card to accurately identify items when importing invoices.