Financial Software Questions? Ask IT Support for Answers ASAP
Hi. Is this a Quicken or QuickBooks question? Thank you.
I am assuming you want to pay a vendor bill using a collectible amount from an invoice.
On QuickBooks, the payable and receivable function usually work independently. However, there is a way to do this.
You can do this by creating a journal entry that will transfer the receivable to the payable account but we need to use a 'wash account' that will serve as a holding account since QuickBooks will not allow us to simply do the transfer. The instructions here may look like a lot of steps, but I want to give you as much information as possible - this should take you less than 5 minutes or so:
To create a wash account:
To create journal to transfer Receivable to Wash Account:
To create journal to transfer from Wash Account to Payable:
Apply the vendor credit created by the 2nd Journal to bill:
Close out the receivable transaction:
Please let me know if you have any questions. If you do not then a positive rating is appreciated so I get credit for the response.