Vendor and customer is same company

Hi HFS3!

Welcome to the QuickBooks Community! I hope you're having a wonderful day. I'll guide you in offsetting the balances.

To do this, we will create a barter or wash account, where we can transfer the balance of the invoice to be used to pay the bill in the vendor profile. A barter account, on the other hand, is set up as a bank account in QBO and normally has no balance.

Step 1: Set up the barter bank account

1. Go to Settings ⚙ then select Chart of accounts.
2. Select New to create a new account.
3. Under the Account Type ▼ dropdown, select Bank.
4. Under the Detail Type ▼ dropdown, select Cash on hand.
5. Enter the account name. (ex. Barter Bank Account)
6. Select Save and Close.

Step 2: Receive payment for the invoice

1. Select + New and then Receive payment.
2. From the Customer ▼ dropdown, select your vendor’s name.
3. Fill in the date and amount.
4. Select the Payment method ▼ dropdown, then Add new.
5. Enter “Barter” in the Name field, then select Save.
6. Select the Deposit to ▼ dropdown, then choose your barter bank account.
7. Select Save and close.

Step 3: Partially pay the bill using the invoice balance

1. Click +New then Pay bills.
2. From the Payment account ▼ dropdown, select your barter bank account.
3. Select the bill to be paid.
4. Click Make payment under Balance Due.
5. Enter the amount and hit Save and close.

If you have any questions, don't hesitate to come back to this thread for help. Have a great day!