Dealing with a supplier who is also a customer

Sales > Dealing with a supplier who is also a customer

Dealing with a supplier 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 supplier 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 more information, 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 number in the Deposit to Account list.

b

In the Customer field, type or select the customer’s name.

c

Enter the amount that you need to offset against an invoice.

2

Record a payment made to the supplier.

a

In the Pay Suppliers window, type or select the Contra Suspense account in the Account field.

b

In the Supplier field, type or select the supplier’s card.

c

Enter 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.

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Receiving payments

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Paying suppliers

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