Accounts Payable credit
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I have a customer that sold me some raw materials (I wrote a PO and received against it) and would like me to give him credit against his Accounts Payable (my receivables). How do I make that transaction?
Answer
I don't recommend this - offseting AP with AR credit. See post on 10/27 "vendor is customer". However, this can be done in QB: issue a credit memo to the customer account and charge it to the expense account for the PO that you are not paying against. Then issue yourself a credit memo from the customer on the invoice that you won't pay. The result will be a charge to the expense account and a credit to AR. I think this would get your accounts correct. Also be sure to get a letter from your customer authorizing this transaction (your not having to pay but issue credit instead).
I am not a tax preparer so you should let your tax person know what you are doing and find out from a tax perspective if this is acceptable.
