How to handle this transaction?

To cut a long story short I am in the middle of setting up the books for a new business (sole trader) and is stuck on how to handle a transaction.

The transaction is a Purchase of stock but has been done on another company’s account which they are going to remove payment for out of my 1st invoice to them for work done. Is wondering how to go about recording this transaction. Has sent invoice off for work done and recorded minus the stock from it. eg 100 for work minus stock - 10 = 90 payable. Has entered the stock purchase into purchase invoices. Now this is where I get stuck how do I treat the payment. As the payment has already come out of the Sale invoice. As if I mark as paid from bank it will throw the books out due to payment been 90 not 100. Any ideas

Just further to the above this is a 1 off transaction and the business will not be doing another transaction of this type in future

Are you talking about barter where customer is also a supplier and purchase invoice should be offset against sales invoice?

If so, see http://guides.manager.io/businesses/customers/contra-entries

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My question is whether you are speaking about inventory or company shares. Which meaning of stock did you intend?

Cheers Lubo’s for the answer yep that will do the trick thanks again for your help

Hi Tut

To answer your question I was referring to stock as inventory not shares should of choose the wording better lol :smile: