Yes this is difficult since QB creates those AR & AP entries which can’t be offset directly. A couple of choices:
Offset them indirectly by recording a dummy refund of the AR item, then make a dummy payment to the AP item. or
Find and open the AR journal entry that QB created […]
Resolution for 'apply issue: 'How do you apply a GST Refund to an unpaid balance?' available: Yes.
The apply issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the apply issue yourself by looking for a resolution described in the article. If it is a complex apply issue or you are unable to solve the issue, you may contact us by clicking here or by using other apply support options.
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