Customer sales & Supplier invoices
Hi All
We have a Company (customer) whom we have been invoicing for works carried out. Now the customer cannot pay this debt.
At the same time the same company (supplier) have invoiced us for supplies we have purchased.
How can I record the following - what we owe them goes towards what they owe us?
Hope all that makes sense
Thanks
Hi Pyret
If I understand the situation correctly, it's a case you are using the invoice from the customer to paying out the supplier bills?
Should that be the case, the process I would use would be below and it involves using a holding account:- Navigate to Accounts>>Accounts List.
- Select New.
- Give the account a number, name and set the account type to be Bank.
- Once that account has been created, you would go to Sales>>Receive Payments.
- Set the Deposit to Account to be the newly created account.
- Process payment on the sales as per normal.
- When you have recorded the transaction(s), you navigate to Purchases>>Pay Bills.
- Set the Pay from Account to be the newly created account.
- Process the payment as per normal.
The above process places the funds into the holding account and then uses those funds to pay off the necessary bill amounts.
