QuickBooksHelpIntuit

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.

For a better experience, open this article in QuickBooks Online. Launch side-by-side view .

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.

QuickBooks Online AdvancedQuickBooks Online EssentialsQuickBooks Online PlusQuickBooks Online Simple Start

Sign in now for personalized help

See articles customized for your product and join our large community of QuickBooks users.