Note: These steps assume that the vendor profile is duplicated in the system as a customer profile, or vice versa 

Steps to take:

1. Record the purchase invoice from the vendor (for example, $200)
   
2. Record the sales invoice from the customer (for example, $84.75)
3. Create an AR receipt for the amount that will be applied to the vendor's invoice: Select Receipts > Create Receipt
4. Create the receipt as normal (for example, for $84.75)
5. Instead of using a cash account, however, use a suspense account; this can be any account (the end result will be no change in the balance), but a liability account is typically use.
   
6. Save the receipt
7. Create a payment to reduce the amount owed to the vendor Payments, then Pay Purchase Invoices
8. Select the Vendor ID
9. Enter a Check/Reference No. and Date
10. Set the Cash account to the same suspense account as used on the receipt.
    • If it's not showing, go to Company > Chart of Accounts, find the account  and under Class Options, set it to Bank
      
      
11. Check Pay on the line for the relevant purchase invoice
12. Change the Amount Paid to match the sales invoice amount (for example, $75)
13. Select Process
    
    
14. Create a second payment to complete payment on the purchase invoice
15. Pay the remaining balance on the purchase invoice as usual
16. Verify with the Aged Receivables and Aged Payables reports that the sales and purchase invoices have both been cleared

Note: If the vendor owes you more than you owe them, the steps are the same, but there will be 2 receipts and 1 payment

Lisez ce blog en Français:

• Comment traiter les transactions pour un client qui est également un fournisseur