Credit from my supplier to pay my invoice to him

Question

I have a supplier who is also my customer..

I have say $500 credit from my supplier and I have an invoice to him for $500.

How do I pass the credit from my supplier to pay off his invoice from me

Tracey_H · Answer

Hi @Noel4819

Sorry for the delay in getting back to you. For that situation:

* record a credit sale transaction (service layout) and allocate to the contra account
* go to Sales register>>Returns & Credits and apply that credit to the sale invoice
* record a credit purchase transaction (service layout) and allocate to the contra account
* go to Purchases register>>Returns & Debits and apply that credit to the purchase invoice

Go to Find Transactions>>Account and search by the contra account, the two transactions should clear each other out so the balance of the account is $0.00.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Noel4819 · Answer

Thanks Tracey for your reply.  I am set up for Contra payments, but this one seems to be the other way around.

My supplier has a credit for say $500, but i cant get the credit to pay the $500 off my invoice to him.

If I pay the $500 off my invoice to him and put it in a credit clearing account. I cant pay his account becasue it is already all paid. He has a credit there already of $500.

I need to get his $500 credit and get it back to pay my invoice to him.  I can refund his $500 to the clearing account, but how can i get it out of the clearing account to pay the invoice i have sent him...  I cant find a way to receive that $500.   .I am a little lost

Tracey_H · Answer

Hi @Noel4819

Thanks for your post. The help article, Dealing with a supplier who is also a customer, has detailed information on how to set up and process contra payments.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.