Transferring account receivable amount to account payable account

[raJ]

I don’t know if this topic was discussed earlier. Could anyone show me how to transfer account receivable amount from customer X to account payable of supplier Y who is a guarantor of the credit given to customer X. For clarity, customer X failed to pay the credit amount and thus supplier Y as guarantor wants to pay instead. But i am bit confused about the journal entries in order to record this transaction properly. Please help. Thanks in advance.

[lubos]

Handling situation where customer is also supplier

If you have a customer who is also a supplier, you may want to offset the outstanding customer and supplier invoices. This is known as a contra entry. In Manager, all sales invoices are sub-accounts of Accounts receivable while purchase invoices are sub-accounts of Accounts payable. This means you can easily credit sales invoices and debit purchase invoices using journal entries. For example, you have a customer who owes you 1,000. [image] At the same time you have made a credit purchase of …

[raJ]

Thank you @lubos