How do I offset an invoice (that they owe me) against a larger invoice (that I owe them)? There is no way they will pay me first then me pay them, that would be too easy.

jason57 · ‎January 24, 2020

emmam6 · ‎October 06, 2022

Hello Community Users! We just thought we'd add an update to this thread. If you do business as a customer and a supplier with the same company and need to offset an invoice against a purchase invoice this is usually done by creating a contra entry. The best way to show this as a contra is with a journal. We have included an article here on what the journal would need to look like. Then you use the journal against the invoice and purchase invoice as payment or part payment. Any questions feel free to just ask.

View solution in original post

John C · ‎January 24, 2020

Hi jason57

We would be grateful if you can inform us of the amounts in question and the amount that you have paid to your supplier.Is it the net amount you have sent to your supplier?

paul72 · ‎January 24, 2020

Hi @jason57

This is called a Contra transaction.

Search on here for Contra.

There are a few ways but...

(1) - create a dummy bank account in QB called Contra;

(2) - receive a payment into Contra a/c from customer to clear the amount they owe you (this clears their debt to you & leaves a balance in the dummy account);

(3) - create a bill payment from Contra a/c to supplier to part pay their bill (this zeroes the Contra a/c & reduces the amount you owe them in QB);

(4) - create a bill payment (from your normal bank account or card in QB) for the balance.

Hope that helps.

emmam6 · ‎October 06, 2022

Hello Community Users! We just thought we'd add an update to this thread. If you do business as a customer and a supplier with the same company and need to offset an invoice against a purchase invoice this is usually done by creating a contra entry. The best way to show this as a contra is with a journal. We have included an article here on what the journal would need to look like. Then you use the journal against the invoice and purchase invoice as payment or part payment. Any questions feel free to just ask.

Topics

Training

Community

Resources

How do I offset an invoice (that they owe me) against a larger invoice (that I owe them)? There is no way they will pay me first then me pay them, that would be too easy.