Trial Balance for Party

Overview

Below is a business-focused explanation of the “Trial Balance for Party” report in Dafater, written for finance teams, accountants, and business managers.

Trial Balance for Party

Module: Accounts
Purpose: Party-wise financial balance analysis

1. What Business Information This Report Provides

The Trial Balance for Party report shows the outstanding financial position of each party your business deals with — such as customers, suppliers, or other counterparties.

Instead of showing balances account-wise, this report answers a more practical business question:

“How much does each customer owe us, or how much do we owe each supplier?”

It summarizes: - Opening balances - Transactions during a selected period - Closing balances
for each individual party

This helps management clearly understand receivables, payables, and exposure at a party level.

2. When and Why to Use This Report

When to Use

Why to Use

3. Key Columns and Their Business Meaning

Party

The customer or supplier name.
This is the focal point of the report — each row represents one business relationship.

Opening Balance

The amount already outstanding at the start of the selected period. - Positive: Party owed money at period start - Negative: Business owed the party

Debit

Total value of transactions increasing what the party owes or is owed during the period. - For customers: Usually invoices raised - For suppliers: Usually payments made or adjustments

Credit

Total value of transactions reducing the outstanding balance during the period. - For customers: Payments received - For suppliers: Bills received or credits

Closing Balance

The net outstanding amount at the end of the period. This is the most important column for business action.

4. Available Filters and Their Business Purpose

Company

Allows review of balances for a specific legal entity within the business.

Party Type

Filter by: - Customer - Supplier
Useful when focusing only on receivables or payables.

Party

View balances for: - A specific customer or supplier
Ideal for account reviews or dispute resolution.

From Date / To Date

Define the financial period under review. Helps in: - Monthly or quarterly analysis - Comparing balances over time

Account

Limit the report to a specific receivable or payable account. Useful for reconciling financial statements.

Show Zero Balance

Option to include or exclude parties with no outstanding balance. Helps keep reports clean and focused.

5. How to Interpret the Results for Business Decisions

High Closing Balance (Customer)

High Closing Balance (Supplier)

Unexpected Balances

Large Movement During Period

6. Common Use Cases and Scenarios

Accounts Receivable Review

Finance team uses the report to: - Identify overdue customers - Prioritize collection efforts

Supplier Payment Planning

Management reviews: - Who needs to be paid - How much cash is required in the near term

Audit and Compliance

Auditors use it to: - Verify party-wise balances - Match ledger entries with supporting documents

Credit Control

Sales and finance teams assess: - Whether customers should receive further credit - If credit limits need adjustment

Dispute Resolution

Used to: - Explain balances to customers or suppliers - Resolve mismatches in statements

Summary

The Trial Balance for Party report in Dafater is a decision-support tool that transforms accounting data into clear, party-wise financial insight. It helps businesses manage cash flow, control credit risk, maintain healthy relationships, and ensure financial accuracy — all from a practical, business perspective.

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Report Information