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T
Taylorshipley
August 15, 2019
Question

Journal in QBO

  • August 15, 2019
  • 1 reply
  • 0 views

I have a customer who has paid a sales invoice but has deducted the money we owe them for supplier invoices off the amount.  So I have £1040.00 short on the customer sales account and  £1040 outstanding on bills owed to them.  How do I reconcile these account to show they are  now paid now.   I have tried entering a journal ie. CR the supplier account and DR the sales account but it didn;t seem to work - that was obviously wrong! Anyone who can help I would appreciate it. 

1 reply

G
GeorgiaC
August 15, 2019

Hey Taylorshipley,

 

You would post a contra journal entry with the details as follows; 

 

1) On line one of the journal entry, enter Account 'Debtors', 1040.00 in the 'Credits' box, and select the customer under 'Name'

2) On line two, enter Account 'Creditors', 1040.00 in the 'Debits' box, and select the suppliers under 'Name'

3) Save and close the journal entry

4) To link the journal entry to the invoice, go to the customer > new transaction > payment and tick the invoice (showing under 'Outstanding transactions' against the journal entry under 'Credits'. The amount recieved should show as 0.00. Save & close.

5) To link the journal entry to the bill, go to the supplier > new transaction > cheque and tick the bill against the journal entry as above

 

Thanks!

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