How do I offset what I owe a vendor, by what that vendor purchased from me?
We have expenses entered (reconciled) for items purchased on behalf of an entity that is "mostly" a vendor. That person owes $1677.46 for those items, and we've created an invoice. Same person provided service for which he sent us a bill in the amount of $2575, Total owed TO this person is therefore $897.54. I can't just apply the 1677.46 as a discount on his bill because it won't settle the issue of his payment not being received.
I've read through all related questions and the closest thing I can see this being is a barter, but it's not an even swap. Would it still apply? How would I do that, to handle the remaining balance owed?
Ideally I'd like to figure out how to simply apply what he owes us as a credit to what we owe him...but it's the step between the (expenses+invoice) -> credit on our bill that I'm missing....