I received a "net" payment from a client who we also owe money to. Instead of paying us $500, he paid $375, with the difference covering two outsanding bills we owe them. These bills are already entered in the vendor payables. How do I book the transaction so it clears both the receivables and bills?
Hi Tim - I am an expert QuickBooks consultant having consulted with many QuickBooks clients for many years on complex issues.
In this case, you'll need to apply the $375 as usual to the customer invoice. The remaining $125 will need to be recorded as a credit memo noting that the credit memo is to offset an amount owed. When creating the Credit Memo, note the item used. On the vendor side, enter a bill credit to offset the vendor bill(s) using the items tab. Use the same item that you used when you created the credit memo.
If the above answers your question, please mark it as solved or answered. If not, please reply to give me some additional details and I'll try and help further.
Selwyn D. van Rooyen
Intuit Solution Provider
Advanced Certified QuickBooks ProAdvisor
http://WynConsulting.com
