How to create invoice to company that is a vendor?

Hi there, @doug-henschen.

Thank you for posting here in the Community. I'm here to help you record/create invoices in QuickBooks Online (QBO) to the company that is also a vendor.

You can create/record a barter transaction for this, barter transaction occurs when you and your vendor exchange good and services. To record the exchange, you would enter an invoice and a bill to record the products or services you are exchanging.

First, you'll need to set up the barter bank account.

1. Go to the Gear icon.
2. Select Chart of Accounts under Your Company.
3. Create a new account, by clicking New.
4. Select Bank for the Account Type.
5. Select Cash on Hand for the Detail Type of the bank account.
6. Enter the account name. (Example: Barter Bank Account)
7. Select Save.

Before entering the barter transaction, make sure that the barter partner's name is in both the vendor list and customer center. After, you can then create and receive a payment for the invoice and enter and pay the bill for the barter transaction.

For the detailed steps, you can check this article: How to record a barter transaction.

Let me know directly if you have any other questions about creating invoice to customer that is also a vendor, I'll be right here to help. Have a wonderful day ahead!