Settlements with counterparties

In the Torgsoft software, settlements are built on a simple, clear, and real-life-oriented income-and-expense management accounting model, without the use of complex accounting entries or charts of accounts. The software records real events: receiving goods creates debt to the supplier, and a financial payment settles it; similarly, selling goods on credit creates a customer's debt to the store.

1. Single control center: «Partner Balance»

All counterparties with whom the company has товарно-грошові relations are divided into two main categories: suppliers and customers (there is also a mixed type, «supplier-customer»). For comprehensive debt analysis, the «Payments» — «Partner Balance» form is used. This tool allows you to:

• See the full picture: how much goods have been received and how much money has been paid.

• Use flexible filters: you can filter the list by period, accounting center, currency, as well as by debt status (for example, «My Debtors», «Whom I Owe», «There Is an Opening Debt», «No Debts»).

• Keep records in different currencies: if goods are purchased in dollars or euros, the balance can be viewed and maintained in the relevant foreign currency.

2. Reconciliation statement: «Settlement Card» 

For a detailed review of relations with a specific partner (to understand where the debt came from), the Settlement Card is used. It serves as a reconciliation statement and contains the following information:

• A chronological list of all transactions (receipts, sales, returns, payments).

• Which employee made changes to the document.

• The amount of debt increase or decrease after each transaction, as well as the current debt at the beginning and end of the selected period.

• Each movement has a corresponding icon for quick visual identification of the transaction type. This card can be saved to Excel or printed with details (including supplier invoice numbers for easier reconciliation).

3. Settlements with suppliers 

Torgsoft offers several scenarios for paying for received goods:

• Payment for a specific invoice. You can go to the goods receipt register, select a specific document, and click «Make Payment to Supplier». The money can be written off from the cash desk, from the bank account, or you can specify «Personal Funds» (if the owner is paying with personal funds and does not want this to affect the store's cash desk).

• Full debt repayment. On the «Partner Balance» form, you can select a supplier and click «Add Cash Transaction». The software will offer the «Calculate Debt» button, which will automatically insert the exact amount required to bring the balance to zero.

• Goods on consignment. This is an extremely useful feature when you pay the supplier only for the goods that you have actually already sold. The software uses the FIFO algorithm (first in — first sold). In the «Supplier Goods Sales Analysis» mode, Torgsoft accurately calculates how much of this supplier's goods was sold during the period and forms the debt amount at purchase prices specifically for the sold items.

4. Settlements with customers (VIP clients) 

Separate control is maintained for regular or privileged customers who are allowed to take goods on credit (for example, for fitting) or pay in installments.

• The software allows you to choose an operating mode, for example, «Maintain Goods-and-Cash Balance». In this mode, the total amount of the customer's debt is controlled without a rigid link to specific goods.

• The customer's debt is automatically displayed on the screen during their next purchase, and the software offers to settle it before processing new goods.

• In wholesale trade (through the «Trade with Invoice Issuance» mode), the software records prepayments. If the customer paid more than the amount of the shipped invoice, the remaining funds are recorded as a prepayment that can be used to pay future invoices.

5. Settlements with intermediaries 

If your business works with intermediaries (designers, site managers, partners who bring in customers), Torgsoft has a separate tool for maintaining balances with them:

• When creating an outgoing invoice, the intermediary is specified, and the software automatically calculates their remuneration (this may be a fixed amount or a percentage of the sale).

• The «Intermediary Balance» form displays all shipments involving the intermediary, the calculated amount of their commission, and the final balance — how much the store owes the intermediary.

• The special action «Make Payment to Intermediary» records the fact that money was transferred to them.

6. Opening debts and financial tools

• Entering opening balances. If you are just starting to work in the software but already have debts (or someone owes you money), they can be entered in the counterparty card on the «Opening Debts» tab by specifying the type: «I Owe» or «Owed to Me», the amount, and the currency.

• Financial documents. All cash movements go through the «Financial Document» form, where they are recorded under specific «Financial Analysis Items» (for example, Trade Revenue, Settlements with Suppliers, Rent, Salaries, etc.). This allows you not only to control settlements, but also to see the overall picture of the business's real income and expenses.

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