What is the best way to pay vendor bills with a customer reduction?
We have vendors that are also customers. We are having more and more vendors reduce their invoices by the amount they owe us. Currently we are handling this through a cash clearing account but it is hard to trace those payments and seems easily susceptible to error. Is there a cleaner, less complicated way to do these transactions?
We do not want to simply reduce our vendor bill as then our profit/loss for those jobs is incorrect.