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CasTakeOver
Level 1

How do I write off payment as comp services? IE. used a photographer for 4hr and her charge is normally $1000; instead of paying we gave comp PT sessions for that value

 
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Best answer May 04, 2020

Best Answers
JamesDuanT
Moderator

How do I write off payment as comp services? IE. used a photographer for 4hr and her charge is normally $1000; instead of paying we gave comp PT sessions for that value

Thanks for getting back with more details, CasTakeOver.

 

Now,we have a clearer view of what is happening. We can easily record the bartered transactions in QuickBooks Online. Here are the steps that we need to take:

  1. Set up the barter bank account
  2. Create and pay the invoice
  3. Enter and pay the bill

To see the details of every steps, you can browse this article: Record a barter transaction.

 

That's how we do it in QBO. Your accountant can also provide additional options about this. They know what's best for you and your books.

 

Feel free to get back to me if you need anything else. Have a great day!

View solution in original post

3 Comments
MaryLurleenM
Moderator

How do I write off payment as comp services? IE. used a photographer for 4hr and her charge is normally $1000; instead of paying we gave comp PT sessions for that value

Hello there, info982,

 

You'll want to record the compliment service first as a gift certificate in QuickaBooks Online, then use it to pay for the service from the vendor. Here's how:

  1. Click + New button.
  2. Select Check or Expense.
  3. From the Payee dropdown, select the vendor you got the certificate from.
  4. From the Bank account (check) or Payment account (expense) dropdown, select the account used to purchase the gift certificate (checking, credit card, petty cash, etc.).
  5. In the Category details section, select the Category dropdown to select the gift certificate account for this vendor. If you don’t have an account for the vendor yet, here's how to add one:
    1. Select Add New.
    2. Set the Account Type to Bank and detail type to Cash on hand.
    3. Give the account a name specific to the vendor and its status as a gift certificate account. Example: Joe's Hardware - Gift Card.
    4. Ignore the ▼ dropdown field that says When do you want to start tracking your finances from this account in QuickBooks?
    5. Select Save and Close.
  6. Enter the amount of the gift certificate
  7. Select Save.

Then, proceed with these steps: 

  1. Click + New button.
  2. Select Expense.
  3. From the Payee dropdown, select the vendor you got the certificate from.
  4. From the Payment account dropdown, choose the gift certificate account for the vendor. You can see the current account balance on the right of the Payment account field.
  5. Record the remaining details of the purchase, then select Save.

You can also consult your accountant on how to record this in QuickBooks. They'll be able to guide you on the correct process.

 

Here's another article for reference: Sell and redeem gift cards or certificates in QuickBooks Online

 

Let me know if you have other questions.

CasTakeOver
Level 1

How do I write off payment as comp services? IE. used a photographer for 4hr and her charge is normally $1000; instead of paying we gave comp PT sessions for that value

Hi,

 

Sorry still a little confused as the vendor didn't give us a gift certificate we essentially traded services instead of money.

 

This is the situation:

**Our business is personal training and 1hr session costs $250

**Vendor business is photographer and her charge is $250 per hour

**We used the vendor for 4hr to get our photos done for our new website and in exchange we comp'd her 4x 1hr sessions to cover the value of $1000

 

So I create a bill under the vendor for $1000 (advertising & marketing expense)

How do I pay the bill since no physical money has exchanged hands but we have essentially sold 4x 1hr sessions to her for $1000 and been paid with 4hr of vendor charges (photography).

JamesDuanT
Moderator

How do I write off payment as comp services? IE. used a photographer for 4hr and her charge is normally $1000; instead of paying we gave comp PT sessions for that value

Thanks for getting back with more details, CasTakeOver.

 

Now,we have a clearer view of what is happening. We can easily record the bartered transactions in QuickBooks Online. Here are the steps that we need to take:

  1. Set up the barter bank account
  2. Create and pay the invoice
  3. Enter and pay the bill

To see the details of every steps, you can browse this article: Record a barter transaction.

 

That's how we do it in QBO. Your accountant can also provide additional options about this. They know what's best for you and your books.

 

Feel free to get back to me if you need anything else. Have a great day!

View solution in original post

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