How do I transfer vendor balance from one vendor to another?
Before you record the balance transfer, you must create an account for it. To create an account:
- Go to Accountant on the left sidebar and select Chart of Accounts.
- Click + New Account in the top right corner of the page.
- Select Other Current Liability as the Account Type from the Account Type dropdown.
- Enter the Account Name as Vendor Balance Transfer.
- Enter the Account Code and write a short description for the account, if required.
- Click Save.
Next, you have to record payment for the vendor’s bill as you are not liable to pay the vendor. To record payment:
- Go to Purchases on the left sidebar and click Bills.
- Select the vendor’s bill for whom you want to record payment.
- Click Record Payment.
- Enter the necessary details.
- Click the Payment Mode dropdown and select Configure Payment Mode.
- Click + Add New and enter mode as Adjustment Mode.
- Select the account as Vendor Balance Transfer in the Paid Through field .
- Click Save.
To track this payable amount against another vendor, you can raise a Credit Note. Here’s how:
- Go to Purchases on the left sidebar and select Bills.
- From + New dropdown, click Create Credit Note.
- Select the vendor for whom you want to create the credit note and fill in the required details.
- Select the Account as the Vendor Balance Transfer. Provide description if required.
- Click Save.
Now, you can track the bill until it is paid off.