how to offset a sales invoice to a purchase invoice

[SSM2021]

Hi,

Customer short paid sales Invoice $4000.00 as they had an outstanding purchase invoice for that amount ($4000) 

what is the process so I don't have any outstanding money in either the sales invoice or purchase invoice 

[LRBooks61 · Accepted solution]

Hi

You could set up a bank account called Contra and record both transactions to that bank account . This records the payments for both the sale and the bill but offsets each other

OR you process both of the transactions to undeposited funds and then prepare the deposit in the bank ( this would be $0.0) 

Hope that helps

Lisa