This help explains how to proceed when a customer is also a vendor and you want to cross-clear invoices in accounts receivable and accounts payable. The help includes setting up the payment method "Kuittaus" and using it when recording manual payments.

Occasionally, you may encounter a situation where a certain customer is also a vendor to the company, and there are invoices in the ledgers that should be cross-cleared. There is no ready-made functionality for this situation, but with some preliminary preparations, a fairly straightforward method can be constructed.

Create a new payment method "Kuittaus"

Open Basic data > Sales basic data > Payment method management > Add new.

  • Give the payment method any name you want.
  • Select any account you want for the payment method.
  • In this example, use the name "Kuittaus" and the account "1777 Clearing account".

 

 Use the payment method for recording manual payment and receipt

Let's imagine a hypothetical situation in the system where Aarne Aarnio Oy is both a customer and a vendor. Aarne Aarnio Oy has invoiced the company 200 euros, and the company has invoiced him 100 euros. It has been agreed with the customer that the 100-euro Sales invoice will be used to clear the company's debt to him.

You can also use this method in reverse for clearing, just do things in the opposite order!

Record payment for the sales invoice

Open Accounts receivable > Accounts receivable view.

  1. Locate the sales invoice in question.
  2. Add a manual payment to the invoice.
  3. Select the payment method (Account) "Kuittaus".
  4. Enter as the payment date the day on which the clearing is decided to be recorded.
  5. Enter the same payment date for the payment in the other ledger.

 3. The voucher formed from the payment looks like this:

Instead of the bank account, the clearing account is used because no money actually moves in any direction. The Sales invoice is cleared as paid in this case.

 Record payment for the purchase invoice

Open Accounts payable > Accounts payable view.

  1. Locate the purchase invoice in question.
  2. Open the purchase invoice.
  3. Select purchase invoice actions from the invoice.
  4. Select show payments.
  5. Make sure that the purchase invoice is approved and posted so that it is possible to record a manual payment.
  6. From the screen that opens, select "add new payment receipt".
  7. Select the payment method (Account) "Kuittaus".
  8. Adjust the amount to match the amount to be cleared.
  9. Enter the same payment date as in the other ledger.

  3. The voucher formed from the payment looks like this:

Again, the clearing account is used instead of the bank account because no money actually moves in any direction. The purchase invoice is cleared as paid for one hundred euros, equivalent to the Sales invoice. Here are the bookkeeping entries side by side:

From Accounts receivable, one hundred euros are transferred to the clearing account, and from Accounts payable, it is then removed. The account serves only as an intermediary, and no balance remains there. Both ledgers have a payment recorded for the invoices, so the situation matches both in the ledgers and in the bookkeeping.


Frequently asked questions

Question: How do I proceed when the same company is both a customer and a vendor and I want to cross-clear the invoices?

First create the payment method "Kuittaus" in payment method management and then record a manual payment in Accounts receivable and Accounts payable using the payment method "Kuittaus" and the same payment date for both invoices.

Question: Why is a clearing account used for the payment method "Kuittaus" instead of a bank account?

A clearing account is used because no money actually moves in any direction. The account acts as an interim account, to which the amount is transferred from Accounts receivable and from which it is removed in Accounts payable, and no balance remains on the account.

Question: Can I use the same clearing method also the other way around?

You can use the same method also the other way around for clearing by performing the same steps but in the opposite order between Accounts receivable and Accounts payable.

Question: What conditions must the purchase invoice meet so that I can record a manual payment on it?

The purchase invoice must be approved and posted so that you can make a manual payment on the purchase invoice via the show payments function.

Keywords: ledger, clearing, sales invoice, purchase invoice, clearing account, manual payment, bookkeeping.

 

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


Did you find it helpful? Yes No

Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.