What is the best way to do an AR/AP swap? I have a customer that we purchased some material from and they short paid our invoice for the amount that we owed them. What is the best way to account for that?
One old school way to clear this would be to create a debit memo in AR for the shorted/owed amount, with a Misc Line booking the amount to the Cycle Count Variance GL Account as a debit. When you cycle the material into your inventory, the inventory adjustment will offset the debit from AR. Then you can apply the debit memo to the remaining balance from the invoice they short paid. If it’s material that you not going to show in inventory, just use the expense account you want to book the cost to on your debit memo.
There is a newish feature in Kinetic for AP AR netting. Maybe this works for you?
Thank you for your reply. I’ll look into this and see how that works for us.
