Defining Roles: Customer vs. Supplier 1. Defining Roles: Customer vs. Supplier In accounting, a customer is an entity to which a company sells goods or services, while a supplier is the entity from which the company buys. These two roles are distinct in accounting flows because they involve different entries: receivables for customers, payables for suppliers. 2. Case of a Dual-Role Entity It is common for the same person or company to be both a customer and a supplier. For example, a company can buy raw materials from another company and sell it finished products. This type of cross-referencing is common in B2B networks. 3. Separate Accounting Records In most accounting systems, two separate records are created: a customer record and a supplier record, even if the information (name, address, SIRET number, etc.) is identical. This allows for the separation of receivables and payables, facilitating tracking and reconciliation.