To set up this features go to Tools > Setup > Company > Customer/Vendor Setup
Once you enter this window, you will define the defaults that will happen with each transaction. Here you’ll need to set the default suspense account, description and the options of setting up specific prefixes for descriptions. Your description will always start with ‘BALTRANSFER’ so you know it’s a balance coming from a customer or vendor. You can also mark to auto-create customers/vendors so any time you create a customer, it will automatically create a vendor with the same ID and name.
From this window you can view who you have set up as relationship on the sales and receivables side.
Once you have the relationship set up, go to Customer/Vendor transactions. That’s where you create the transactions that go between sales and payables. From there you choose the customer and vendor, date to transfer.
Credit and debit memos will be automatically created once you post the transaction. You can preview the transaction prior to posting.
Once you have this functionality set up you’ll no longer have to worry about manually processing or sending out unnecessary checks. For more help on this topic,
by DFC Consultants