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