We have a service provider who is also a client of ours. We charge this client on a monthly basis through A/R but we are also invoiced from him monthly for services provided. He has indicated that instead of us paying him by cheque, he would just like the amount owed to him to be offset against the amount he owes us. I know that we could just record a credit note to his A/R account and capture the expense that way but we would ideally like to set him up as a vendor in A/P as well so we can track the services he's provided. Is there an easy way to record the invoices in A/P but have the payments applied to his A/R?? Thanks!