HI
I have a situation as One customer is both a vendor and a customer
We have a balance outstanding with them, so now they are deducting our invoices from the amount we owe
What is the proper way to enter this
Thanks in advance Penny
HI
I have a situation as One customer is both a vendor and a customer
We have a balance outstanding with them, so now they are deducting our invoices from the amount we owe
What is the proper way to enter this
Thanks in advance Penny
Within Sage 50 you have to use a clearing account to contra A/R with A/P. If you pay your A/P with a credit to a clearing account and then receive your A/R receipt using the same dollar value and the same clearing account. This takes two entries and the clearing account should always remain with a zero balance.
Thank you. That’s great. Now Is the clearing account in the 5000’s or 1000’s
if you know what I mean. Or does it matter
I would probably set up the account as an Asset in the 1000 so it can be used as a 'bank' making it available for both A/R receipts and A/P payments. This would be needed if the transfers between A/R and A/P were to happen frequently.
Thank You so much All done and worked perfectly
*Community Hub is the new name for Sage City