Sales > Dealing with a vendor who is also a customer
Dealing with a vendor who is also a customer
If your business sells goods and services to a business from which you also make purchases, you need to record the transactions using a separate customer and vendor card. You can then record a contra payment to offset the receivable and payable amounts.
Before you can record contra payments, you need to create a bank account called Contra Suspense. For information about creating accounts, see Set up accounts.
To record contra payments
1
Record a payment from the customer.
a
In the Receive Payments window, type or select the Contra Suspense account in the Deposit to Account field.
b
In the Customer field, type the customer’s name or select it from the list.
c
Type the amount that you need to offset against an invoice.
2
Record a payment made to the vendor
a
In the Pay Bills window, type or select the Contra Suspense account in the Pay from Account field.
b
In the Vendor field, type or select the vendor’s card.
c
Type the amount that you need to offset against a purchase.
After these entries are made, your bank accounts will not have been affected; yet the receivable and payable accounts have been reduced. The Contra Suspense account balance should be zero.
Related topics
▪
Receiving payments
▪
Paying bills

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