Payment Adjustment with Customer/Vendor



Company ‘A’ purchased a Material value of 10,000 INR from Company 'B’
Company ‘B’ purchased a Material value of 5,000 INR from Company ‘A’

Now ‘B’ saying that adjust the amount of these bills/invoices and release the pending payment.

How we will do this one with Manager?


You can do journal entry to offset Sales Invoice with Purchase Invoice.

This will decrease outstanding balance of sales invoice by 5,000 and outstanding balance of purchase invoice by 5,000.

When customer is also supplier

when I try to use this method the following happens.

  1. the supplier invoice shows as payed in full ( even tho I have only received a percentage )
  2. the supplier invoice is for rent and the rent still shows as full amount in expenses summary

what can i do?

  1. What was the original amount of invoice? How much did you debit through journal entry? Are there any other transactions posted against that purchase invoice?
  2. Yes, that’s correct. Even though you did a barter with supplier, you still incurred the rent expense so that’s correct.


HI Lubos,
I am still having an issue with this.
I have a purchase invoice for 2400, a sales invoice for 317.80 from the same person.
when I do a journal entry for this I get:

in the sales invoice it shows paid in full ( as it should)
but in the purchase invoice window it shows the invoice paid in full also no balance left to pay.
Also I can not find any reference to the balance.


When you go to Purchase Invoices tab, there is a column Balance due, can you click on the amount 0.00 for that invoice and see what’s in it? It will show ledger for that purchase invoice since the invoice was created until fully paid. What transactions are posted against that invoice so the balance come to 0.00?


here is a screen shot of the issue.

here is the Purchase invoice and journal entry.

can you look at this and let me know what is wrong.



You must debit/credit both invoices by 317.80. Remember, every journal entry must be balanced (debits must equal credits). If it’s not, the difference will be posted to Suspense account. This is to ensure your books are always balanced.

Anyway, you are offsetting 317.80 so that’s the amount you need to use on debit and credit columns.

Here is more:


thank you Lubos,
That makes perfect sense now.