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Point of Sale: Turn an invoice into a bill credit for a customer who is also a vendor

If you have a customer who is also your vendor, you may encounter situations where you owe each other money. This is similar to bartering, where two people exchange goods or services.

Detailed Instructions

The following steps are done within QuickBooks Point of Sale for Desktop and QuickBooks Desktop. Ensure that financial integration is properly set up.

In Point of Sale:

  1. Click Customers > New Customer.
  2. Create a customer with the vendor's name. Click Save.
    Note: To differentiate the customer name from the vendor name, you may choose to use a naming convention such as "-C" following the name. For example: John Smith-C.
  3. Create a new sales receipt containing the items that will generate the bill credit. Select the customer that you just created for the customer name.
  4. Click Account, accept the charge and complete the receipt normally.
  5. Choose Financial > Update QuickBooks to send the transaction to QuickBooks Desktop.

In QuickBooks Desktop:

  1. Go to your Chart of Accounts and create a Bank account called Clearing Account.
  2. Create a journal entry crediting Accounts Receivable and debiting Clearing Account for the amount of the sale. In the Name field on the Accounts Receivable row, enter the customer name created in QuickBooks Point of Sale for Desktop during the previous steps. Click Save & New.
  3. Create a second general entry crediting Clearing Account and debiting Accounts Payable for the amount of the sale. In the Name field on the Accounts Payable row, enter the vendor name that needs the bill credit created. Click Save & Close.
  4. Choose Vendors > Pay Bills to apply the bill credit to a bill.
KB ID# HOW12410
4/26/2017 8:45:39 AM
QYPPRDQBKSWS07 9138 Pro 2017 ef07db