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We were paid for warranty labor with a credit on a vendor invoice. How do I move that credit to offset a posted A/R invoice?

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QuickBooks Team

Re: We were paid for warranty labor with a credit on a vendor invoice. How do I move that credit ...

Hello there, dale9.


Thanks for checking in with us. I'm here to help and guide through on how to handle your concern with offsetting credits from vendor invoices. 


You can record this entry into QuickBooks using barter transactions. This process is used to record exchanged transactions between you and your vendor.


Here's how to create a Barter Account:

  1. Click the Gear icon and select Chart of Accounts.
  2. To create a new account tap the New button.
  3. Select Bank for the Account Type.
  4. Use Cash on Hand for the Detail Type of bank account.
  5. Enter the account name.
  6. Hit Save and Close.

Once done, you create the invoice and receive payment:


To create an invoice:

  1. Click the Plus (+) icon.
  2. Select Invoice.
  3. Add the customer name on the Customer field.
  4. Complete the information of the sale.
  5. Click Save and close.

To receive a payment:

  1. Click the Plus icon (+) then select Receive Payment.

  2. Enter the name of the customer.
  3. From the Outstanding Transactions section, mark the transactions you want to pay.
  4. Choose your payment method.
  5. Enter the Reference no. and Memo if applicable.
  6. Use the Barter Account.
  7. Select Save and Close.

Now you ready to enter and pay the bill for the barter transaction. You can check out this visual guide for the steps on how to do it: Entering bills in QuickBooks Online (Tutorial).


Also, to know more about recording barter transactions in QuickBooks Online, here's a great article that you can refer to: How to record a barter transaction.


There you have it. All the information above should guide you through the whole process. I'm just a post away if you have other questions about this. I'd be happy to help you some more.