Within Sage 50 you have to use a clearing account to contra A/R with A/P. If you pay your A/P with a credit to a clearing account and then receive your A/R receipt using the same dollar value and the same clearing account. This takes two entries and the clearing account should always remain with a zero balance.

Within Sage 50 you have to use a clearing account to contra A/R with A/P. If you pay your A/P with a credit to a clearing account and then receive your A/R receipt using the same dollar value and the same clearing account. This takes two entries and the clearing account should always remain with a zero balance.

Thank you. That’s great. Now Is the clearing account in the 5000’s or 1000’s

if you know what I mean. Or does it matter

I would probably set up the account as an Asset in the 1000 so it can be used as a 'bank' making it available for both A/R receipts and A/P payments. This would be needed if the transfers between A/R and A/P were to happen frequently.

Thank You so much  All done and worked perfectly