I have a client who is also my landlord. I provide product and services to them and that goes towards my rent each month. So if my rent is $1,500.00USD and I bill them $1,000.00USD then I only cut them a check for $500.00USD at the end of the month. I have tried several different ways of entering this and never seams to show up the way I want.
I want it to show up as an expense that both neutralizes the invoice (shows paid) and credits the rent category in my expenses.
I don’t want it to show up as income since it isn’t (I don’t want to be taxed on something I didn’t make)…
I don’t want it to show up as over payment and a liability, since it isn’t.
If you wouldn’t bill anything your client, you would go to “Spend money” and categorize the payment for rent like this:
If you have issued an invoice for $1,000 and you are using this credit from invoice to offset rent payment, just categorize the payment $500 like this:
This will allocate $1,500 to rent expense but the payment is only $500 because you are using $1,000 to pay your client’s invoice instead of giving them this money and leaving the invoice unpaid.
Your last requirement that you don’t want your client’s invoice to show as income because you never receive money is irrelevant because you actually receive money in the form of credit which you used to lower the amount you paid to landlord.