Showing results for 
Search instead for 
Did you mean: 

Reply to message

View discussion in a popup

Replying to:
QuickBooks Team

Re: Our vendor/supplier wants us to invoice them for the amount of a claim we have on one of thei...

Hello there, KathyF.


I appreciate you for taking the time to reach us back and provide additional details of your concern. I'm here to make sure you're in the right track of handling this situation.


As I've read through the whole thread, I come up with this resolution. Since you've already created a Bill and an Invoice for your vendor/supplier, we'll just need to apply the payment from each of them.


Before we start, let's set up a clearing account or wash account to move funds from one account to another.


Here's how:

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

Now that we're done setting up a Clearing Account, let's create a Check for your Bill and apply the Clearing Account. Let me walk you through the steps below:

  1. Go to the Banking menu.
  2. Select Write Checks.
  3. From the Expenses tab, enter an account for Accounts Payable and the Clearing Account on another line.


Once done, let's Pay Bills to link your Bill and Check. Below are the steps on how to do it:


  1. Go to Vendors.
  2. Click Pay Bills.
  3. Select the Bill and click the Set Credits.
  4. Check the box beside the credit and click Done.


For the Invoice created, we can create a Bank Deposit before Receive Payment


To create a Bank Deposit, here's how:


  1. Go to the Banking menu at the top.
  2. Choose Bank Deposits.
  3. Select the Clearing Account as the Deposit To account.
  4. In the Received From section, choose the vendor you created as a customer.
  5. Choose Accounts Receivable as the From Account.
  6. Enter the amount.
  7. Click Save & Close.



Once done, let's Receive Payment to link the Deposit and Invoice.  Doing all this should zero out the balance of your Clearing Account.


That's it. If there's anything I can further assist you with the whole process, please let me know. I'm always here to help you out.

Need to get in touch?

Contact us