I have a company the is both a vendor and customer. How do I apply what I owe them to what they owe me?

I can help you with recording your transactions, @mikolandscape.

You can enter an invoice or sales receipt when you want to collect funds from your customers. Then, record a bill, check, or expense to record any services that you owe or items received that you will pay for later.

To know when and how to enter transactions that I've mentioned above, refer to these articles:

• Learn the difference between bills, checks, and expenses in QuickBooks Online
• What is the difference between an invoice, sales receipt, bill, and statement?

If you've added invoices and bills, check out the following articles on how to record bill and invoice payments:

• Enter bills and record bill payments in QuickBooks Online
• Record invoice payments in QuickBooks Online

I'm always here if you need more help in recording your transactions. Let me know by leaving a reply below. Keep safe and have a wonderful day!

Hi and thank you for your response.  I do know how to enter items in AP and AR, but want to know how to crossover the two when I have a company that is a customer AND vendor.  Can you explain that process to me?  

Let me provide you with additional information about adding items to your AP and AR, mikolandscape.

The accounts payable (AP) balance is the total amount of unpaid bills owed to third parties. The receivable account, on the other hand, represents amounts your business is owed.

QuickBooks Online organizes accounts payable data for you to always know how much you owe to vendors and when your bills are due. Hence, you can create a bill, expense, check to enter your payables.

For your accounts receivable (AR) entries, you can enter an invoice and sales receipt.

The only time that you link a vendor transaction to a customer is when you need to enter a billable expense. To track your billable expenses, you need to turn this feature.

Let me show you how to do it.

1. Go to Settings ⚙, then select Account and Settings.
2. Proceed to the Expenses tab.
3. From the Bills and expenses section, select Edit ✎.
4. Turn on the following:
   • Show Items table on expense and purchase forms
   • Track expenses and items by customer.
   • Make expenses and items billable.
5. (Optional) Set up the following:
   • Markup rate
   • Billable expense tracking
   • Sales tax charge
6. Bill payment terms.
7. Click Save.

After that, enter a billable expense and add it to the customer's invoices.

Here's a link to guide you through the process: Find out how to record billable expenses in QuickBooks Online. It provides a quick video tutorial and detailed steps.

Keep me posted if you have follow-up questions about handling entries from a vendor that is also your customer. I'll be right here to provide the information that you need.