Netting Off (I think)

Accounting is not my thing…
My customer is also an occasional supplier. I paid most of a purchase invoice, then my customer “netted off” part of my recent invoice to fully pay the purchase invoice. I consented to this, but am now wondering how to get both their invoice & mine be be shown as paid. To complicate it, my invoice was in CZK & their invoice was in Euro.

Hello Rory

You would manually contra the invoices off

To do this you would set up a dummy bank account (in this case GBP because of the different currencies)
You would record a payment for both invoices on this account

I found another forum posting on this you may find useful

Hi Rory
I do this too
I’ve set up a dummy bank account and called it “Bank Suspense Account”
I then record 2 transactions - one showing money coming in from Customer (I use customer name as narrative) and then do the same showing money coming out
If you tag in the usual way it will clear both and balance on bank suspense will be back to zero
Hope that helps

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