Record a barter transaction
by Intuit•20• Updated 3 months ago
Learn how to record a barter transaction in QuickBooks Online.
A barter transaction happens when you and your vendor 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.
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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 vendor (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 vendor’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 vendor’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 Vendor ▼ 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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