Vendor as a Customer

[daveparrish]

I have a customer who is also a vendor.
There is an order placed for this customer and the order is shipped out of our warehouse stock to the vendor’s customer who we have no relationship to in the system other than as a ship to address.

Then the vendor sends us a credit for the invoice that the amount needs to be credited to them as a vendor and as a customer.
I can see how to handle the vendor side, I can just use the credit and credit to the gl.

The problem is the customer side as how to handle the credit there, if I credit the invoice or items it will through off the inventory, income, and exc.

If I do this as a receivable the payment goes in the cash (bank account), I need to show as a payment but not affect the cash (bank account).

Any help would be greatly appreciated.
Thanks
Dave

[agaluski]

Can you enter the amount as a receipt on on the customer. Cash goes up, A/R goes down. Sales and inventory OK.
Then pay the vendor invoice with the 'cash' from the bank. Cash goes back down to where it should be and A/P is closed out.
You can even setup a new G/L account and Bank for this. It should be a 'clearing' account of some sort. Balance should always be 0. Dummy transactions won't clutter real bank account for reconciliation.