I have a transport agent who i take service from regularly. Assume i took a service, and the bill was 10k. I have paid him 3k, and due is 7k. If i just generate a JE such that 3k is paid from cash account to “Freight & Fwd charges” it serves half the purpose only, as i dont see anywhere that i still need to pay 7k to him.
Is the below workaround a good way.
I add him as a supplier. I create a item called “transport service” but i dont maintain stock for this item, and its not sellable. I create a invoice for this item with 0 cost. And in additional charges i put 10k and choose the “Freight & Fwd charges” account head. So that 10K hits the freight account head.
Now i make a payment for this invoice for 3K. So it will show that i still have due of 7k in AccountPayable.
Is this a good way of doing it. Should i be even adding him as a supplier , and create transport item ? Is there a better way.