We can use a Journal Entry to match the short paid invoice from a customer to the amount that you owe from them, @jessbelles04.
Let's create a Journal Entry to move the Accounts Receivable to the Account Payable. Here's how:
- Click the +New icon and select Journal Entry.
- Credit the Accounts Receivable and associate the customer's profile.
- Debit the Accounts Payable and associate the vendor's profile.
- Enter the Details and select Save and close.
Then, you can use the Journal Entry to offset the balance due. I also recommend reaching out to your accountant for the Journal Entry to make sure that you're using the correct account.
You can then link the Journal Entry to both invoices (by Receive Payment) and bills (by Pay Bills) to clear them out.
If you have any other questions, don’t hesitate to comment below.