I don’t know a lot about accounting. I just want to make this less confusing. So, pls help me guys.
There is one company, I sell stuff to them and also buy stuff from them. There is hardly any cash transaction.
I had to enter this same company as a customer and a supplier. I think this is very confusing. I saw somewhere about a journal entry or something which is not familiar to me.
Is there an easy way to do this after new updates?
Please explain me about a better way.
Thanks
making a journal entry is the only way at present.
you can credit or debit the Accounts receivable or Accounts payable account accordingly for the company you have setup as a customer and supplier.
Accounts receivable is for customers and Accounts payable is for suppliers.
so if you have bought for 100 and sold for 200, you can offset the balance by debiting the Accounts receivable account of the customer and crediting the Accounts payable account of the supplier.
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The Guide you refer to is this one: Manager Cloud. There is no plan to change the way things work. This is because customers and suppliers are subsidiary ledgers of different control accounts, Accounts receivable and Accounts payable.
If you are not familiar with double-entry accounting, you need to educate yourself. Otherwise, you will never be able to use Manager effectively. The program is a tool, and you need to understand what the tool is meant to do. I recommend starting here: https://www.accountingcoach.com/. It is free.
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This situation is explained here Offset simultaneous sales and purchase invoices
The journal entry will offset the sales invoices and purchases invoices until only one balance is left - either in your Accounts Receivable if they owe you money or in your Accounts Payable if you owe them money
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Thanks guys I will study this and get knowledge on accounting… 
But, do I need to do this every time or this is one time thing? coz this is daily business.
Can you elaborate a bit on your business?
Why are you buying and selling to a single customer/supplier every day?
Every time you do a compensation between debits and credits that, under a strictly legal point, should be done in a written form, ie with a contract.
You make a journal entry every time you want to offset purchase invoice(s) against sales invoice(s) for the same customer/supplier. Note that you can combine multiple invoices of each type by entering more line items in the journal entry. The point is to settle one or more invoices without actually moving money. Of course, since the purchase and sales invoices are not likely to match exactly, you will either need to (a) carry forward the difference until the next invoice or (b) spend or receive a little money to make up the difference.
I’m not sure exactly what you mean, @Davide. The invoices satisfy any requirement for documentation. They are sufficient legal evidence of the obligations in either direction. And the journal entry is satisfactory evidence of how the offset was performed. You don’t need a separate written contract in order to offset one against the other. Or maybe that is what you meant?
By law, at least in Italy, you need a written authorization signed by the counterparts to do a compensation.
That’s interesting. Presumably you don’t need a written contract before paying an ordinary purchase invoice or receiving money against an ordinary sales invoice. So why do you need a separate contract before you can settle the composite accounts of a single entity. The parties have acknowledged validity of the claims in either direction by acceptance of the invoices and the resulting net payment (whichever way it goes).
There are not even any tax issues, because taxes were handled on the invoices themselves.
He and I are importing and selling different stuff, we are in a mutual understanding to not import whichever other ones doing. So frequently I buy from him and he buys from me.
For example because one of the two can be subject to a revocation of the payment if the counterpart fails.
And also because, in absence of a cash flow and a written piece of paper, you can potentially have a difformity between the two balances that can bring you many problems with the tax authorities
Well, @Davide, if your local law requires a contract, by all means obtain whatever supporting documentation is necessary. But from an accounting perspective, Manager does not require one. The journal entry takes care of it all.
Of course. But we were talking about when to register the compensation in Manager. And the date in the two companies should be the same. And the only way to be sure is to have something written
Another way people do that would be to create a dummy cash netting account, record offsetting payment and receipt to that account.
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