Hi, we have a vendor who is also a customer. We credited the customer and debited the vendor with a Journal Entry and applied the JE to open invoices for the customer. There is no payment record anywhere and the A/R Payment History by Payment still shows the balance as unapplied. Where can we see a record of the payments being applied? Or why is it showing unapplied? -- Additionally, is this the proper way to handle these kind of transactions or is there a better way?

Offset Open Bill of Vendor with Open Invoice of Customer (Contra) Solution Given the following sample scenario: · Test Customer E is both a vendor and a customer. · Vendor Bill = testcso1 · Invoice = inv47 A. Make offsetting Journal Entry 1. Go to Transactions > Financial > Make Journal Entries 2. Enter necessary information 3. Click Lines 4. Account: · Debit: Accounts Payable used in Bill o Name: Test Supplier E · Credit: Accounts Receivable used in Invoice o Name: Test Customer E 5. Click Save Note: The debit and credit side should be equal B. Apply Journal as Payment on the Open Bill 1. Open the Bill 2. Click Make Payment 3. Click Apply tab 4. Mark Apply box on the line for the Bill and Journal created 5. Click Save C. Apply the Journal as Payment on the Open Invoice 1. Open the Invoice record 2. Click Accept Payment 3. Click Apply 4. Click Invoice tab 5. Mark the Apply box for the Invoice 6. Click Credit tab 7. Mark the Apply box for the Journal created

This is how we did it, but how can we get a receipt of the applied amount?

We use cash clearing accounts, so we just do a customer payment and a vendor payment to the clearing account, then check the clearing account is zero afterwards.

I think there is an enhancement for allowing netting (currently only IC netting is possible) but it is very old so unlikely to ever get done at this point I think - Jon's tip is quite good though, minimal effort