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Sam H
Level 2

How to Create Accounts for Vendors Who are Also Customers?

How to Create Accounts for Vendors Who are Also Customers? I have a Vendor for who we sold a copier and they will provide us with advertisement material, over a few months period. However, I'd like to be able to show the sold machine and then each month credit their account for the advertising bill. How can I do that?

Thanks!

3 Comments 3
Rubielyn_J
QuickBooks Team

How to Create Accounts for Vendors Who are Also Customers?

It's a pleasure to have you here, @Sam H.

 

To set up or create an account for vendors who are also the customer is to slightly make a different name to indicate its customer/vendor profile. 

 

You can visit this link to view suggestions: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/re-make-a-customer-a-vendor...

 

Additionally, you can also visit our Support page if you need more tips, resources, and video tutorials. It includes information to help you manage your company files.

 

Don’t hold back to add a remark below if you need further assistance with managing your customer and vendor lists in QuickBooks. I’m here to help always. Keep safe and take care.

Sam H
Level 2

How to Create Accounts for Vendors Who are Also Customers?

How can I apply a debit on that customer's account and at the same time have a credit to the same name vendor, where I can ultimately [in time] offset the debit with the credit?

jamespaul
Moderator

How to Create Accounts for Vendors Who are Also Customers?

Hello, Sam. 

 

Good to have you back, and I'd like to show you the process of dealing with the sold copier and the advertising bill from the same entity. 

 

You would want to set up a barter transaction for the copier sold and the advertising bill. Generally, you'll want to create a barter account, a bill (for the advertising bill), and an invoice (for the copier sold). 

 

Create a barter account: 

 

  1. Go to Lists, then select Chart of Accounts
  2. Right-click on the Chart of Accounts window, then select New.
  3. Select Bank for the Account Type, then hit Continue.
  4. Enter a name like "Barter account" or similar.
  5. Click Save & Close

 

If you haven't done it yet, create a customer account for the vendor. Then, create their vendor profile afterwards.

 

You can add something to differentiate between the two profiles such as John Doe-Vendor or John Doe-Customer (QuickBooks won't let you create lists with the same name). 

 

After creating their profiles, enter an invoice for the copier sold: 

 

  1. Go to the Customers menu, then select Create invoices.
  2. Add the vendor's customer profile on CUSTOMER:JOB
  3. Under ITEM CODE, add the copier sold then enter the amount. 
  4. Add other details such as invoice number, memo, etc..
  5. Click Save & Close

 

Then, enter a bill for the advertising: 

 

  1. Go to the Vendors menu, then select Enter Bills.
  2. Add the vendor's profile for VENDOR.
  3. Enter the advertising materials under Expenses or Items (depends on how you track these). 
  4. Add other important bill information.
  5. Once done, click Save & Close

 

To initiate the barter transaction, simply create a payment for the invoice then deposit the funds to the barter account you've created. Go to the Customers menu, then select Receive Payments.

 

barter1.PNG

 

If you don't see the Deposit To drop-down menu, QuickBooks sets Undeposited Funds as your depositing account. Create a bank deposit by going to Banking, then selecting Make Deposits

 

Alternatively, you can unset the Undeposited Funds account as your main destination by editing your preferences: 

 

  1. Go to Edit, then select Preferences.
  2. Click the Payments tab.
  3. Go to Company Preferences.
  4. Uncheck Use Undeposited Funds as a default deposit to account
  5. Hit Save.

 

Finally, create a bill payment using the barter account's funds: 

 

  1. Go to the Vendors menu, then select Pay Bills.
  2. Check the bill, then enter the monthly amount under AMT TO PAY.
  3. Set the Account to the barter account you created.
  4. Once done, click Pay Selected Bills

 

barter2.PNG

 

You'll want to keep creating the payments until the invoice and bill amounts offset each other. 

 

That covers on how you can handle the copier sold and the advertising materials for a vendor who is also a customer. 

 

If you need a guide on how to run reports to see your transaction data, you can check this article: Understand reports.

 

You're more than welcome to ask any other questions in recording your transactions. Do you have any other concerns about your lists, reports and other data in QuickBooks? Let me know and I'll throw in some guides for you. 

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