If a vendor is also a customer, or vice versa, you can have the payment program and the dunning program clear the vendor and customer open items against each other. You can also select the customer line items when you display the vendor line items for this account.

Before you can clear items between a vendor and customer account, you must:

1. Create a customer master record for the vendor who is also a customer.
2. Enter the customer account number in the Customer field in the control section of the general data in the vendor master record.
3. Enter the vendor account number in the Vendor field in the control section of the general data in the customer master record.
4. Select Clrg with vend. and Clrg with cust. in the company data in both the customer and vendor master records. In this way, each company code can decide separately whether it wants to clear the customer with the vendor.