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.

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

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

Hi and thanks for the contra process guide (https://quickbooks.intuit.com/learn-support/en-uk/help-article/journal-entries/enter-contra-payments... )

We have deployed this successfully in UK QBO, but now want to use this in our Italian subsidiary company accounts where we are using QBO International version.

The journal entry sets up ok, but when we go to connect this to the invoices it comes up with an error suggesting we are about to create a credit that should not exist.  This happens in the first instance when we seek to apply it as a payment on the invoice sent to the customer version of the company.

Our italian coilleages say they were adviced locally that the journal contra method does not work in QBO International, which is why they were using the bank contra method.

I hope you can advise on how this can be made to work.
Many thanks in advance

Ken