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Record a barter transaction

by Intuit•2• Updated 4 months ago

Learn how to record a barter transaction in QuickBooks Online.

A barter transaction happens when you and your supplier exchange goods and services. To record the exchange, you’d enter an invoice and a bill to record the products or services you’re exchanging. Here’s how.

In this article, you'll learn how to:

Set up the barter bank account
Create an invoice and receive payment
Enter and pay the bill

Step 1: Set up the barter bank account

Go to Settings ⚙ then select Chart of accounts.
Select New to create a new account.
Under the Account Type ▼ dropdown, select Bank.
Under the Detail Type ▼ dropdown, select Cash on hand.
Enter the account name. (ex. Barter Bank Account)
Select Save and Close.

Step 2: Create an invoice and receive payment

	Important: Before entering your barter transaction, make sure you've added your barter partner as a supplier (for the bill) and customer (for the invoice). Since you can’t have the same name in both lists, make one of the names slightly different.If your business operates on a cash basis, the invoice payment and bill payment should both be dated with the same date as the invoice or bill.

Create an invoice

Select + New.
Select Invoice.
From the Customer ▼ dropdown, select your supplier’s (barter partner) name.
Enter all the necessary information.
Select Save and Close.

Receive payment for the invoice

Select + New.
Select Receive payment.
From the Customer ▼ dropdown, select your supplier’s (barter partner) name.
Note: The details and info from the invoice you’ve created earlier will appear under Outstanding Transactions.
Fill in the date and amount.
Select the Payment method ▼ dropdown, then Add new.
Enter “Barter” in the Name field, then select Save.
Select the Deposit to ▼ dropdown, then select your barter bank account.
Select Save and close.

Step 3: Enter and pay the bill

Create a bill

Select + New.
Select Bill.
From the Supplier ▼ dropdown, select your barter partner.
Enter all the necessary information.
Select Save.

Pay the bill

Select + New.
Select Pay bills.
From the Payment account ▼ dropdown, select your barter bank account.
Select the bill you’ve created earlier.
Select Make payment under Balance Due.
Enter the amount.
Select Save and close.

You now have a record of the exchange. If the exchange of goods isn’t equal in value, the invoice or bill will show a balance due or credit.

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