Sales and Purchase

[QFMathew]

Hi @DJM

If your client is also your supplier you could set up a contra-invoicing account to manage the funds between both.

See this topic with help on setting this up:

Contra-Invoicing, Same Customer and Supplier, Netting-off receivables and payables

Do you have a recommended method for ‘netting-off’ customers who have made supplies i.e. transfer the balance on an unpaid purchase invoice to the Customers account and apply against outstanding invoices. Do not want to use a credit notes because that would understate values in the P&L.

@DJM

he has just deducted the amount we owe him from his invoice

As he deducted it from the value of the invoice, or the outstanding balance?