Offset a Bill and an Invoice for a Customer which at the Same Time is a Vendor.

There are instances when a Customer can also be identified as a Vendor of a Company. In this scenario, aside from an Invoice, a Bill may also be created for the Vendor role of the said Customer. Instead of making/recording a Payment, users want to offset the said Bill and Invoice. To offset a Bill and an Invoice for a Customer which at the same time is a Vendor, perform the following:

1. Create a Journal Entry as an offset transaction for both Invoice and Bill. Navigate to Transactions > Financial > Make Journal Entries:
   • Debit Accounts Payable
   • Credit Accounts Receivable
2. In the Accounts Receivable line > Name field and assign the Customer Name
3. In the Accounts Payable line > Name field > assign the name of the Vendor
4. Click Save
5. Navigate to Transactions > Customers > Accept Customer Payments
6. Select the Customer Name
7. Mark the Invoice on the Apply tab and mark the Journal Entry on Step 1 on the Credit tab. Make sure that Payment Amount should be 0
8. Click Save. This offsets the amount for the invoice
9. Navigate to Transactions > Payables > Pay Single Vendor
10. Select the Vendor name
11. Mark the Journal Entry on step 1 and the Bill
12. Click Save. This offsets the amount for the Bill