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Subject Author Date
Contra Invoices plbrown 07-22-2007
Posted by plbrown on July 22, 2007, 5:16 am
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 I got a somebody set up as a supplier and as a customer. How can I
offset the money that I owe them using the money that they owe me on
QB 2005?

Many thanks
Peter


Posted by Arno Martens on July 22, 2007, 8:52 am
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 wrote:

>I got a somebody set up as a supplier and as a customer. How can I
>offset the money that I owe them using the money that they owe me on
>QB 2005?
>
>Many thanks
>Peter

Others will tell you how to do that.
I would suggest you not offset anything.
Make an invoice for your goods/services and have him issue a cheque to
pay for it and you do the same.

It will be much easier to follow and search individual transactions.
--
Arno

Posted by Laura on July 22, 2007, 9:15 am
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> wrote:
>
>>I got a somebody set up as a supplier and as a customer. How can I
>>offset the money that I owe them using the money that they owe me on
>>QB 2005?
>>
>>Many thanks
>>Peter
>
> Others will tell you how to do that.
> I would suggest you not offset anything.
> Make an invoice for your goods/services and have him issue a cheque to
> pay for it and you do the same.
>
> It will be much easier to follow and search individual transactions.

That is one way to do it.

An alternative is to create a "clearing account" (type is bank) to use
instead of the normal bank account. Create your invoice/bill as usual for
both sides of the transaction but use this account to Pay bills and receive
payments into to clear the invoices.


Posted by Allan Martin on July 24, 2007, 8:23 pm
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> wrote:
>
>>I got a somebody set up as a supplier and as a customer. How can I
>>offset the money that I owe them using the money that they owe me on
>>QB 2005?
>>
>>Many thanks
>>Peter
>
> Others will tell you how to do that.
> I would suggest you not offset anything.
> Make an invoice for your goods/services and have him issue a cheque to
> pay for it and you do the same.
>
> It will be much easier to follow and search individual transactions.


True there would be a paper trail however the offset guarantees timely
payment.


> --
> Arno



Posted by L on July 22, 2007, 9:27 am
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>I got a somebody set up as a supplier and as a customer. How can I
> offset the money that I owe them using the money that they owe me on
> QB 2005?
>
First, make sure that you have two entries for them, one in the vendor list,
and one in the customer list.

You can use different entry methods to get what you need - journal entries,
credit memos, vendor credits, or combinations. A look in the QB help file
under 'barter' would yield some information, but I'll give you the method I
finally settled on.

Create an account in the accounts list called 'barter'. For simplicity I
made it a bank account.
Create an item in the item list that is associated with that account, make
sure it is non-taxable. Give it a description, such as 'Credit to customer
for vendor services recieved.'

The customer invoices and vendor bills are entered as usual.

When it comes time to pay the vendor look at the vendor balance due, and the
customer balance owed. Write down the smaller amount.

Create a credit memo for customer, using the item you created for barter.
Copy the item description to the memo line - it really does make statements
easier to read.

Create a vendor credit {using the enter bills screen} for the same amount,
using the barter account. Again, put a memo in for clarity.

At this point, you should have a barter account balance of zero - and
credits in both the vendor and customer accounts. Use the 'pay bills' screen
to apply the vendor credit to the vendor bills. Use the 'recieve payments'
screen to apply the customer credit to the open invoice(s).

I chose to use credit memos and vendor credit entries rather than journal
entries, because of the nature of QuickBooks reporting. I found customer and
vendor balance detail reports easier to understand when using credit
memos/vendor credits than when I used journal entries. I also was able to
give the customer a copy of the credit memo, so they would have a record for
their own use.



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