If you have a customer that is also a vendor, you may want to apply their A\/R invoices against their A\/P balance.\u00a0 To do that, first you will need to set up a new GL account.\u00a0 Then you have a simple two step process to clear both balances.<\/p>\n
First, set up a dummy cash account that will be used as a clearing account.\u00a0 Go to Maintain<\/em> – Chart Of Accounts<\/em>. Enter a number for your new account in the Account ID<\/em> field.\u00a0 I would recommend giving it a number that falls at the end of your range for cash accounts.\u00a0 Enter a description such as A\/R A\/P Clearing Account.\u00a0 Leave the Account Type<\/em> set to Cash and click Save<\/em>.<\/p>\n Next, enter a receipt to mark the AR invoices as paid.\u00a0 Go to the Tasks<\/em> menu and choose Receipts<\/em>.\u00a0 Change the cash account to the clearing account you just set up.\u00a0 Enter the customer ID and check the invoices to be paid just like you would if you had received a check.\u00a0 You will need to enter something in the Reference<\/em> even though there is no check number; enter something like “trade” or the AP invoice number you’re offsetting this against.\u00a0 The payment method isn’t important in this case, but if you want you could set up “Trade” as a payment method by going to Maintain – Default Information – Customers – Pay Methods<\/em>.<\/p>\n Finally, enter a payment to clear off the AP invoices.\u00a0 Go to Tasks<\/em> – Payments.<\/em>\u00a0 Change<\/em> the cash account to the clearing account, enter the vendor ID, and check the invoices that you want to offset against receivables.\u00a0 You can enter a partial payment amount if needed to get the total to exactly match the amount of receipt from the previous step.\u00a0 Enter a dummy check number before saving the payment.<\/p>\n The receipt will debit the clearing account and the payment will credit it, resulting in a zero ending balance.\u00a0 A non-zero balance in the clearing account always<\/span> means that something has been entered incorrectly or is not complete.<\/p>\n One important note is that both the Receipts<\/em> and Payments<\/em> windows remember the last cash account that was used, so be sure to change it back to your regular cash account next time you enter a transaction.\u00a0 Or, better yet, open an existing receipt and payment and resave them before closing the windows to reset the cash accounts.<\/p>\n","protected":false},"excerpt":{"rendered":" If you have customer that are also vendors, you may want to offset the A\/R and A\/P balances against each other. This tip shows you how to do it easily.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/posts\/448"}],"collection":[{"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/comments?post=448"}],"version-history":[{"count":5,"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/posts\/448\/revisions"}],"predecessor-version":[{"id":626,"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/posts\/448\/revisions\/626"}],"wp:attachment":[{"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/media?parent=448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/categories?post=448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/tags?post=448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}