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Level 1

apply money between company that is both vendor and customer

I have a customer that owes money for an outstanding invoice.  We received an invoice from this customer this month and they would like me to apply the amount that we would pay out to their open balance.  This will still leave a balance due from the Customer.  How do I process this since the company is in our system as both a vendor and a Customer?

4 Comments
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Level 15

apply money between company that is both vendor and customer

ahhh, you have customers - that pay you, and vendors that you pay. you send an invoice to a customer, the vendor sends you a bill (invoice to his customer) makes talking about this stuff a lot easier to understand if you keep those relationships in mind.

So a customer owes you money

You owe a vendor less money

the vendor wants you to apply the vendor bill to the invoice, lowering the amount due

You need to have a cash type bank account or create one

Pay the bill from the cash type bank account
create a credit memo for the customer, use a service item that links to the cash type bank account and enter the amount

in the cash account the payment and deposit cancel (wash), the bill is paid, the customer invoice is less by the amount of the bill

Moderator

apply money between company that is both vendor and customer

@finances1 Thank you for joining community!

 

Great question, I have instructions to follow in order to properly record this in QuickBooks. 

 

The following link includes step-by-step instructions:  Turn an invoice into a bill credit for a customer who is also a vendor

 

Let me know if that helps!

Highlighted
Level 1

apply money between company that is both vendor and customer

Thank you for your help.  I decided to go with journal entries.  Not to keen on using dummy accounts but that is definitely a way to go also.

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Moderator

apply money between company that is both vendor and customer

@dwealand Happy Monday!

 

I'm glad to see you were able to find something that works for you.  If you find yourself needing advise working QuickBooks, we're just a click away! 

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