It sounds like you're trying to do a trade or barter transaction. Is that correct? If so, this may help you:
A barter transaction occurs when you and your vendor exchange goods and services. To record the exchange, you would enter an invoice and a bill to record the products or services you are exchanging.Step 1: Set up the barter bank account
Here's how to set up the barter bank account:
Before you begin to enter the barter transaction, make sure the barter partner's name is in both the vendor list and customer center. Since you can't have exactly the same name in both lists, make one of the names slightly different.Step 2: Create and receive payment for the invoice for the barter transaction
After that you will need to create and receive payment for the invoice for the barter transaction:
Finally, you will enter and pay the bill for the barter transaction.
Once the invoice is created and the bill is paid, you will have a record of the exchange but the barter bank account will be zeroed out.
If the exchange of goods was not equal in value, keep in mind that the invoice or bill will show a balance due or credit. In that case, you'd need to either Pay one vendor (if you owe the customer/vendor) or receive payment (if they owe you) to clear the balances owed.
|Note: If your business operates on a cash basis, the invoice payment and the bill payment should both be dated with the same date as the invoice or the bill, whichever came last.|
Now you know how to record a barter transaction.
Hope that helps!!
It's a couple of steps, but there's a pretty straightforward way to do this.
Note that when you go to pay the bill, you'll be paying the full amount; and in the meantime you'll be waiting for a check for your claim, which you'll apply to the open invoice when it shows up.
Thank you, I was able to create the invoice. Now from this I have another question because I have just been told that our vendor will issue a credit against the account if the invoice/claim is accepted. Now when this happens, how do I resolve the invoice I created?
Thank you for your help, I was able to create the invoice. Now I have just found out that our vendor/supplier will issue a credit to our account if they find the invoice/claim to be valid. If this happens, how am I to resolve the outstanding invoice? Many thanks in advance!
Thanks for coming back to the Community, @KathyF.
Let’s straightened out the issue by recording a barter transaction.
To track the exchange of items, create a new account first. Here’s how:
Create a bill to input the transaction by going to the Vendor Center. I have a few steps to do this.
To record the barter transaction, you’ll have to receive the payment.
With these steps, the open invoice will now be closed.
Reach out to me if you need further assistance with any of these steps. I'll jump right back in to help.
Now I know I did something wrong! I now have the amount of the bill listed in our checking account as paid. Any idea how to fix?
Thank you so much for your help. I've now made things a real mess! I followed the steps as valderost gave me but I'm sure I did something wrong. I entered on a separate line (the value of our claim) while entering the bill, and deducted the claim amount from the line item we have the claim for, so that the total of the bill would remain the same. Now, in our checking account register, the claim amount is entered as paid, as if I wrote a check for it. This was done before I received your reply, there was no mention of a barter account in the answer from valderost so I therefore did not open one. I entered the claim amount on the bill, entered the new "claim" account for the vendor under customer/job, and checked billable. I was going to delete the "payment" from the check register, but thought maybe I would just remove the claim line from the bill itself and start from scratch, but that did not work and the checking is still showing the claim as paid. Can you help me? After I get through this mess, I need to know how to remove the claim invoice to show as closed/resolved after out vendor credits our A/P account for it. We will not be receiving a check to clear it.
I think I figured it out, the item that I entered was tied to the checking account. Once I changed it to the barter account (I opened after I got your reply) it disappeared from the check register. Does that sound right? If it is, then I'm down to the final question, how to remove the invoice with the credit that the vendor will issue to settle the claim so it does not show as cash received?
Hello there, KathyF.
I appreciate you for taking the time to reach us back and provide additional details of your concern. I'm here to make sure you're in the right track of handling this situation.
As I've read through the whole thread, I come up with this resolution. Since you've already created a Bill and an Invoice for your vendor/supplier, we'll just need to apply the payment from each of them.
Before we start, let's set up a clearing account or wash account to move funds from one account to another.
Now that we're done setting up a Clearing Account, let's create a Check for your Bill and apply the Clearing Account. Let me walk you through the steps below:
Once done, let's Pay Bills to link your Bill and Check. Below are the steps on how to do it:
For the Invoice created, we can create a Bank Deposit before Receive Payment.
To create a Bank Deposit, here's how:
Once done, let's Receive Payment to link the Deposit and Invoice. Doing all this should zero out the balance of your Clearing Account.
That's it. If there's anything I can further assist you with the whole process, please let me know. I'm always here to help you out.