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Level 1

Trade Agreement vs Accounts Payable

We entered into a trade agreement for Advertising VS Inventory.  How do I offset this to show the invoice paid and the inventory pulled out?

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Best answer 12-19-2018

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Anonymous
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Trade Agreement vs Accounts Payable

In these cases you first should create a 'normal' vendor bill and a 'normal' sale invoice (or similar 'normal' documents).

These cannot be directly applied to each other so you need a place to 'clear' them - to do that I alwasy keep a dummy bank account in my gl for contra/offset/clearing transactions.

Then create dummy cash payments and cash receipts which both flow thru the clearing bank account (or code the other 'normal' documents thru that account)

 

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Highlighted
Anonymous
Not applicable

Trade Agreement vs Accounts Payable

In these cases you first should create a 'normal' vendor bill and a 'normal' sale invoice (or similar 'normal' documents).

These cannot be directly applied to each other so you need a place to 'clear' them - to do that I alwasy keep a dummy bank account in my gl for contra/offset/clearing transactions.

Then create dummy cash payments and cash receipts which both flow thru the clearing bank account (or code the other 'normal' documents thru that account)

 

View solution in original post

Highlighted
Level 15

Trade Agreement vs Accounts Payable

This is also the reason to use regular transactions: "How do I offset this to show the invoice paid and the inventory pulled out?"

 

If you mean, Sold by Barter, you still need to deal with Sales and Sales Tax reporting. You need the name as Customer and the name as Vendor, and treat them as separate parties.

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