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9130347640777136
Level 1

Record customer who is also a service supplier

We have a customer who we provide with products and invoice them.

On occasion they provide a service, which they invoice us for.

If they have an outstanding invoice payable to us, they deduct this from what they owe.

E.g. We invoice £1000 We use service to value of £400. They pay us remaining £600.

 

How do we correctly record this as a separate customer and supplier account would show the invoice they owe us as open.

3 REPLIES 3
ShiellaGraceA
QuickBooks Team

Record customer who is also a service supplier

You've come to the right place, @9130347640777136.

 

You'll want to create your customer as a supplier and add a special character to identify it as a supplier. Let me guide you how.

 

  1. Go to Expenses, then Suppliers.
  2. Select New supplier. Then, enter the supplier information.
  3. Make sure to add an identifier in the supplier's name so QuickBooks won't prompt it as duplicate.
  4. Click Save.

Then, create a journal entry to record both payments on your A/R and A/P accounts. This process will let you apply the payment to the existing bill and invoice, so you can just either "receive payment" or "pay bills" on the remaining balance.

 

Please refer to this article for details on how to create a journal entry in QuickBooks Online.

 

We also have a guide on how to categorize and match online bank transactions that I'm sure you'll find helpful. It has step-by-step instructions on how to review and match transactions that are in your bank with QuickBooks.

 

Please know that we're always here if you need help with anything else. Feel free to reply anytime soon. Thanks for dropping by and I wish you have a great rest of the week.

9130347640777136
Level 1

Record customer who is also a service supplier

Hi,

 

Thanks for the below, but I'm not very familiar with journals.

Could you give me a slightly more detailed walkthrough of this part.

 

The expense will be in our A/P 'advertising' account. But the A/R account will be 'Sales of Product Income' account.

 

 

Ashleigh1
QuickBooks Team

Record customer who is also a service supplier

Hello 9130347640777136, 

 

Thanks for coming back to us, 

 

If you are unsure of how to create a journal and not sure what to put where we suggest you reach out and speak to an accountant. They will be able to guide you on how to record things in the journal. 

 

We are not trained accountants, we are just technical support.