If you have a supplier that is also your customer, and both of you may prefer to use the invoices to offset one another when purchase or sales are done. Amount in a puchase invoice is used to offset a sales invoice or vice versa. There's no actual money collected in this process. In such cases, you will need to contra the sales invoice with puchase invoice or vice versa.
The example outlined in this post is for contra the invoices whereby your customer and supplier has to be the same person.
You can easily contra your sales and purchase invoices by following simple steps below:
1. Create a customer and supplier in your TreezSoft account for that person/company.
2. Create sales invoice and purchase invoice as normal, directing to the same customer and supplier you wanted.
3. Create a cash & bank account (e.g. "Clearing Account". this account act as a temporary account) in your charts of account in TreezSoft.
4. Create "make payment" and credit to "Clearing Account" above.
5. Create "received payment" and debit to "Clearing Account" above.
From above, the both invoice would be fully paid, no amount remain in "Clearing Account".
You can continue reading on invoices in TreezSoft blogs through these links:
TreezSoft is a cloud accounting software for Small and Medium-sized Enterprises (SMEs). It allows you to access your financial information anytime, anywhere. It also allows you to have unlimited users for FREE for your account in TreezSoft. Our aim is to help reduce our clients' time spent on accounting mainly by using our automated processes and integration to help increase their company effeciency at a minimum costs. SMEs can use TreezSoft to keep track their expenses, accounts, daily operation e.g. Point of Sales (namely QPOS) system and etc.
Visit TreezSoft at http://www.treezsoft.com/ to sign up for a 30 days trial account with us!
You can also email us at [email protected] for more enquiries.