There is one key field in the business partner header window which is the "Business Partner Category".
You should select a category to which the business partner is going to belong to.
To learn more about "Business Partner Category", visit Business Partner Category section.
Rest of fields at header level are common fields which require to enter basic business partner information such as:
- the Search Key or short name which will help you to measly identify and search a given business partner
- the Commercial Name
- the Fiscal Name if known. If it is know, it is the one used in "official" documents such as invoices and tax reports, otherwise the commercial name will be used instead.
- a brief Description if needed
- the business partner URL if known
- a Reference No which can be used as an additional way to identify a business partner
- the Consumption Days information which will be used while creating sales or purchase orders for that particular business partner, by using a process named "Copy Lines".
To learn more about that process, visit Sales Order and Purchase Order sections.
- and finally "Credit Line Limit". Openbravo will inform whenever the credit limit entered in this field for the business partner is over while booking sales invoices.
A new check named Consent for Customer Data Processing has been created in business partner data model, to reflect whether a given contact consents or not that his/her data can be used by the organization.
Obviously, it is not the same to enter and configure a customer than a supplier/creditor or an employee, that is the reason why "Business Partner" window has three main tabs and therefore sub-tabs which allows you to set up each main business partner type separately:
- Customer tab
- Customer Accounting sub-tab
- Vendor tab
- Vendor Accounting sub-tab
- Employee tab
- Employee Accounting sub-tab
Above mentioned tabs and sub-tabs are described in the next chapters of this section.
Finally, it is very important to remark that there could be other types of business partners which require to be set up as business partners in this window; business partners which have nothing to do with either a customer, or a supplier/creditor or an employee.
That is the case of the Banks.
The Banks needs to be created in the business partner window header by just entering basic header information and no data in any of the business partner window tabs, but Location and Contact.
The reason why is because "Bank" type business partners are needed in the "Remittance" financial workflow.
To learn more about this workflow visit, Financial Account
Set New Currency
"Set New Currency" process allows to change business' partner currency.
Business partner currency is automatically filled in with the currency of the "Price List" assigned to the business partner. Once filled in, it can be changed if required by running "Set New Currency" process.
Normally, business partner currency is the same as the currency of the price list assigned to it. However, it can happen that a business partner having, for instance, a EUR price list assigned, might have USD as its by default currency.
In that case, all the transactions booked in EUR for that business partner, will be exchanged to USD, therefore business partner balance is calculated in USD.
Set New Currency process allows to define:
- a new currency for the business partner
- as well as the currency conversion rate to be used to exchange customer balance to the new currency.
At first, the currency shown in "Set New Currency" window is business partner price list currency, in our example "EUR".
Business partner new currency can be entered in the field "Currency", for instance "USD".
Check-box "Use default conversion rate" uses the conversion rate defined in Conversion Rates window, to recalculate business partner balance from EUR to USD, in our case.
If this check is not selected, a new field "Rate" is shown to allow entering a specific conversion rate.
Additionally, a business partner might have available credit in a given currency.
If that is the case, Openbravo informs us about that, because business partner available credit will have to be exchanged to the new currency, therefore it can be consumed in the new currency.
This process creates automatically three new payments, in case business partner has available credit:
- a GL Item payment in EUR, that moves credit amount to the ledger account defined in the selected "G/L Item", in the CREDIT.
- a refunded payment in EUR, that moves credit amount to a prepayment account in the DEBIT
- and a "Zero" amount payment that is a credit payment in USD (new currency). This credit payment moves credit amount to a prepayment account in the CREDIT.
Let us take as an example a business partner having a price list in EUR.
- This business partner has a current balance of 306.00 EUR and a generated credit of 100.00 EUR, which makes decrease its balance to 206.00 EUR.
- After that "Set New Currency" process is run for this business partner, because its currency needs to change to USD
- "Set New Currency" process informs us that there is available credit for the business partner in the old currency (EUR). That available credit needs to be exchange to the new currency (USD), therefore a conversion rate needs to be used. In this example system conversion rate is used, that is 1.13 EUR to USD.
- Once "Set New Currency" process ends business partner:
- current balance shown changes to 232.78 USD (206.00 EUR * 1.13 EUR/USD).
- currency shown is USD
- and three new payments are created, as described above, to exchange available credit into the new currency.
- After that a new sales invoice is booked for the business partner in EUR, as business partner price list is in EUR. Sales invoice total gross amount is 41.50 EUR.
- This new sales invoice, once booked, will change business partner balance to 279.68 USD, that is (sales invoice amount 41.50 EUR * 1.13 EUR to USD) + 232.78 USD.
- After that a new sales invoice for an amount of 100.00 USD is booked for the business partner. While completing this new sales invoice, a new window appears showing business partner USD credit available, in our case 100 EUR * 1.13 EUR to USD = 113.00 USD.