How to Apply Sales Invoice to Bills in Xero?

"How to Apply Sales Invoice to Bills in Xero?" Solution to this is little tricky. 

Some software do not follow this as they took both vending and supplying a different thing and generate the different bills for the same. For instance let's have a look on barter payment with a supplier.

Follow these steps to record a barter payment with a supplier (by a transaction of goods or services to reduce debt you owe to them), rather than paying money through a bank account. You might also refer to this as offsetting sales invoices with bills.

Barter invoicing should be treated the same as a normal invoicing situation. 

You'll need to firstly record the two transactions separately by raising a bill and a sales invoice. What you can then do in Xero is effectively show the sales invoice as being paid and recognize the reduction on the amount owing on the bill, by following these steps:

• Go into your Chart of Accounts, select the Suspense account and tick the box 'Enable payments to this account'.
• Go into the sales invoice and enter the payment details, instead of selecting the bank account, select the Suspense account. In the invoice payment Reference field you may want to enter 'offset bill' or other suitable note for yourself. 
• Go into the bill and enter the payment details (being the amount of the sales invoice), again select the Suspense account. This time in the Reference field you may want to enter 'offset sales invoice' or similar.

The net effect in the Suspense account for this transaction should be zero, the Sales outstanding balance should be zero and the Purchases balance is now reduced by the amount of the sales invoice.

You should check with your accountant or bookkeeper about offsetting any debt and check with them that this is the way they would like you to offset sales invoices and bills.

Hence, "How to Apply Sales Invoice to Bills in Xero?" is been easily be solved by using this.

Ved Paliwal 

Owner of GD Outsourcing Services