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accounts151
Level 1

Is it possible to contra supplier invoice against customer invoice, both same company?

 
3 REPLIES 3
JamesC
QuickBooks Team

Is it possible to contra supplier invoice against customer invoice, both same company?

Hello Accounts151,

 

You are able to achieve this via two methods:

 

Contra "Bank Account" method:

Create a Contra Bank account, and pay off the supplier invoice with that contra bank account, and then pay off the customer invoice by the same amount as you have the supplier invoice, again, using the contra bank account. This is the simplest method - at the end of this process, the Contra Bank Account should show Zero.

 

Journal Entry Contra method:

You are able to complete Contra using a Journal Entry, with the use of the Debtors/Accounts Receivable & Creditors/Accounts Payable accounts on the journal. You'd decrease the value of both the Debtors Asset and Creditors Liability accounts on the journal, and then use the receive payment and pay bills function on the customer and supplier accounts to link everything together to the Journal.

 

Ideally; you need a qualified accounting professional to advise you of the best method for your business.

Ri3
Level 1

Is it possible to contra supplier invoice against customer invoice, both same company?

As A Farmer i work with several markets depending on the time of year I am buying or selling therefore i need to have the markets as cusomers for when I sell through them and at other times a supplier for when I buy through them

EmmaM
QuickBooks Team

Is it possible to contra supplier invoice against customer invoice, both same company?

Hello Ri3, Thanks for reaching out. Did you have a question on contra entries?

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