Clear net payment receipts? IE: sell to customer' set up as a bill. Customer is also a vendor. I get paid net cheque. How clear net cheque when I book the cash receipt?

I sell to customer' set up as a invoice. Customer is also a vendor who I set up a bill for their services. I get paid net cheque. How do I clear net cheque when I book the cash receipt?

Note: I am a beginner QB user to any help is appreciated!

Answer

Hi triacc2017,

Welcome to the QuickBooks Community. You can record your customer payments as contra account in a few steps. I’d be happy to show you how.

To clarify, did you already create the invoice and bill to your customer/supplier? In any case, if you haven’t created these transactions yet, kindly create them first. If you already created them, proceed to record the payment.

First, you need to create a journal entry. This way, we can add credits to each of the customer and supplier profiles you’ve created. Please refer to the screenshot on how to create the journal entry. 

Next, allocate the payments to your invoice. Go to your open invoice and record the payment.  Make sure to add the journal entry on the invoice payment. You can see it on the right side of the create invoice page or below the invoice table. Then, fill out the remaining amount of the invoice and save to mark it as paid. This process will now record the net payment for the excess amount.

Lastly, the journal entry created will also serve as the payment to the bill. You can verify it by checking the open balance on the supplier profile. Before the journal entry was created, there is an open balance. Once the journal entry is created, an offset is created to zero out the open balance. Thus, recording the payment for the supplier bill.

If you have other questions, please feel free to leave a comment below.

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IntuitJuanConrado , Community Support Specialist
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