Contra with third party - keeping the supplier invoice open

Question

Not sure on the best way to input this. We have a supplier that we have created a sales invoice for as a warranty claim. They then send us a credit note invoice that will cover generally only part of this claim.

Now I can create payment to the sales invoice as a contra payment but I can't receive the supplier credit note to contra account as I need to keep it open to apply to that months bills from the supplier through a third party.

I have tried entering the credit note with the account number as the contra account but unless I select no gst it doesn't match up correctly in the contra account. Is there a better or easier way to do this that doesn't mean we are losing the gst portion of the invoice?

princess_r · Answer

Hi EM83,
&nbsp;
Making sure both the GST treatment and the supplier credit are handled properly in your file definitely makes sense.
&nbsp;
It's a bit of a tricky setup, and the best way to handle it will really depend on how you need the GST and the supplier credit to show in your accounts. Because of that, it’s a good idea to check in with your accountant or bookkeeper first so it’s reported the way you need. We do have this article you can look through as a starting point, but getting advice from your accountant would be the best next step.
&nbsp;
Cheers,
Princess

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Contra with third party - keeping the supplier invoice open

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