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Kevin PPS
Level 1

AP/AR

We have vendors that are also customers.  Is there a way to offset their AR against the AP before issuing a check to the vendor?

Solved
Best answer February 26, 2020

Best Answers
IntuitLily
Moderator

AP/AR

Glad to see you in the Community, @Kevin PPS.

 

Yes, you can offset their AR against AP by using a clearing account to record payment and pay bills. If you haven't created a clearing account yet, you can follow the steps below on how to set it up in QuickBooks.

 

  1. Go to the Chart of Accounts by clicking the Lists menu.
  2. Right-click anywhere and select the New option.
  3. In the Add New Account window, select the Bank radio button.
  4. Click Continue.
  5. In the Account Name field, enter Clearing AccountBarter Account or Wash Account.
  6. Do NOT enter an opening balance.
  7. Select Save & Close.

This account can be used to move money from one account to another account. To learn more, you can check this article: Set up a clearing account.

 

Once done, you can do the normal process of recording payment from the customer and paying bills to the vendor using the clearing account.

 

Know that I'm here to provide further assistance if you need it. All the best!

View solution in original post

1 Comment
IntuitLily
Moderator

AP/AR

Glad to see you in the Community, @Kevin PPS.

 

Yes, you can offset their AR against AP by using a clearing account to record payment and pay bills. If you haven't created a clearing account yet, you can follow the steps below on how to set it up in QuickBooks.

 

  1. Go to the Chart of Accounts by clicking the Lists menu.
  2. Right-click anywhere and select the New option.
  3. In the Add New Account window, select the Bank radio button.
  4. Click Continue.
  5. In the Account Name field, enter Clearing AccountBarter Account or Wash Account.
  6. Do NOT enter an opening balance.
  7. Select Save & Close.

This account can be used to move money from one account to another account. To learn more, you can check this article: Set up a clearing account.

 

Once done, you can do the normal process of recording payment from the customer and paying bills to the vendor using the clearing account.

 

Know that I'm here to provide further assistance if you need it. All the best!

View solution in original post

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