How to reconcile entries for partner that is BOTH a client AND a supplier?
I have a partner that is BOTH a client AND a partner.
Lets say we have the following entries:
|Customer account debit(counterpart move from client invoice) ||1000,00 EUR |
|Supplier account credit (counterpart move from supplier invoice)||600,00 EUR |
Every month we do a balance check so we have
Balance: 400 EUR receivable
Since we have both receivable and payable amount, in order not to exchange any money, we are obligated (by law) to issue a reconciliation note stating the reconciling entries as such:
|Customer account credit||600,00 EUR|
|Supplier account debit||600,00 EUR|
The entries above zero out the supplier account and leave 400,00 EUR payable in total for next month.
The problem with this approach is that the entries above (from the reconciliation note) are reconciled with each other but are not reconciliated with the invoices, so all invoices (both sale and purchase) remain open.
Any one any clues how to handle that so invoices are paid?