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Level 1

I have a Vendor that we buy material from, but they are also a Customer and buy material from us.

I have Vendors that we buy material from, but they are also a Customer and buy material from us. I need to apply the money that they would owe us as a credit against the bills that we owe them. Is there a way that I can do that just from the Vendor side of things, or would I have to keep them separated on the Customer and Vendor side of things for everything to balance right? I guess I need to know if I have to create an invoice for their purchases or if I can use like the vendor credit option to do this. 

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Best answer November 19, 2020

Best Answers
QuickBooks Team

I have a Vendor that we buy material from, but they are also a Customer and buy material from us.

Good morning, @challen.

We'll be conducting a barter transaction in this case! This 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:

  1. Go to Settings ⚙ then select Chart of Accounts.
  2. Select New to create a new account.
  3. Under the Account Type ▼ drop-down, select Bank.
  4. Under the Detail Type ▼ drop-down, select Cash on hand.
  5. Enter the account name. (ex. Barter Bank Account)
  6. Select Save and Close

Then we'll create an invoice and receive payment on this invoice.  For more detailed instructions on creating and receiving payment on invoices, check out this article: Create invoices in QuickBooks Online.

 

Lastly, we'll want to create and pay a bill to record the second part of this transaction. 

 

To create a bill: 

  1. Select + New.
  2. Select Bill.
  3. From the Vendor ▼ drop-down, select your barter partner.
  4. Enter all the necessary information.
  5. Select Save.

And then, to pay the bill:

  1. Select + New.
  2. Select Pay Bills.
  3. From the Payment account ▼ drop-down, select your barter bank account.
  4. Select the bill you’ve created earlier.
  5. Select Make payment under Balance Due.
  6. Enter the amount.
  7. 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.  If you would like to read about this process in full detail, you'll find this article helpful: Record a barter transaction.

 

If you have any other questions, or I can be of more assistance, please reach back out! Have a great rest of your morning.

View solution in original post

1 Comment
QuickBooks Team

I have a Vendor that we buy material from, but they are also a Customer and buy material from us.

Good morning, @challen.

We'll be conducting a barter transaction in this case! This 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:

  1. Go to Settings ⚙ then select Chart of Accounts.
  2. Select New to create a new account.
  3. Under the Account Type ▼ drop-down, select Bank.
  4. Under the Detail Type ▼ drop-down, select Cash on hand.
  5. Enter the account name. (ex. Barter Bank Account)
  6. Select Save and Close

Then we'll create an invoice and receive payment on this invoice.  For more detailed instructions on creating and receiving payment on invoices, check out this article: Create invoices in QuickBooks Online.

 

Lastly, we'll want to create and pay a bill to record the second part of this transaction. 

 

To create a bill: 

  1. Select + New.
  2. Select Bill.
  3. From the Vendor ▼ drop-down, select your barter partner.
  4. Enter all the necessary information.
  5. Select Save.

And then, to pay the bill:

  1. Select + New.
  2. Select Pay Bills.
  3. From the Payment account ▼ drop-down, select your barter bank account.
  4. Select the bill you’ve created earlier.
  5. Select Make payment under Balance Due.
  6. Enter the amount.
  7. 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.  If you would like to read about this process in full detail, you'll find this article helpful: Record a barter transaction.

 

If you have any other questions, or I can be of more assistance, please reach back out! Have a great rest of your morning.

View solution in original post

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