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January 17, 2020
Question

On Sales Mr Smith owes us £100 and on Expenses we owe Mr Smith £100, how do I process a transaction to clear both accounts?

  • January 17, 2020
  • 2 replies
  • 2 views
No text available

2 replies

Level 14
January 17, 2020

Hello Helenharrison,

 

All you need to do is make payment on the sale for that £100 and on the expense just make payment on that £100.

paul72
Level 6
January 20, 2020

@helenharrison 

 

In order to do a Contra (offset) transaction you need to create a dummy bank account - call it Contra.

 

Enter a payment from Mr Smith for the £100 he owes you - make sure it goes into the dummy account in QB, not into your usual account.

Enter a payment to Mr Smith for the £100 you owe him - make sure it goes from the dummy account in QB, not your usual account.

 

This way, both debts are cleared, your usual bank account hasn't been affected & the dummy account balance is zero.