As the net payment will come into your main bank account as one figure this method allows you to clear both the customer and supplier invoices separately via a manual bank account set up specifically for this purpose.
In this example we will look at the following scenario:
We have invoiced a customer £20,790 for barley sold.
That same customer is also a supplier and has billed us for £5,200 of seed.
The customer has paid us £15,590 which is the net of the customer and supplier invoice.
STEP 1
Firstly set up a new bank account to deal with the two-way trader entry
Go to Banking – Bank Accounts and select Add New Bank Account:
Create the new bank account and make sure the entry method is set to manual:
We would recommend calling this bank account something like “Two-way trader account” or “Nil bank account” as a reminder that the balance on this account should always come back to zero.
Save Bank Account.
STEP 2
Now go to your main bank account to process the payment or receipt:
Go to the bank feed for the main bank account and find the net receipt (or payment).
Edit this entry so it shows as money in (or money out) and select the category to be the new bank account e.g. “Two-way trader bank”:
1. Tick the transaction to confirm it, and then Confirm Checked.
STEP 3
Manually enter the customer receipt and supplier payment in the new bank account to clear the invoices:
Click on the blue tab to the right of the “Two-way trader” bank account to Enter Transactions.
Enter a customer receipt to clear the sales invoice and, on a separate line, a supplier payment to clear the purchase invoice. The net receipt or net payment (which in our example is £15,590) should show as the balance:
Click on Save All.
Your manual bank account (eg two way trader account) balance should now have cleared back to zero:
And your customer and supplier invoices should now show as paid:
