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Level 2

Vendor invoices paid through settlement from attorney's checking account

Hi,

 

A lawsuit was settled and my customer paid some of my vendor invoices.  The invoices were paid by the attorney's office, not through my checking account.  How do I record those payments in  QBO?

 

Thanks for your help!

 

Vicki

 

2 Comments
QuickBooks Team

Vendor invoices paid through settlement from attorney's checking account

Hello ATOZOOK,

 

You can consider recording those payments as barter transactions. Let me show you how.

 

First off, we'll need to set up for a barter bank account for us to be able to record the bill that was not paid through your checking account.

 

Here's how:

    1. On the left panel, click Accounting.
    2. Click New.
    3. Select Bank for the Category Type.
    4. Select Cash on Hand for the Detail Type of bank account.
    5. Enter the account name. (Example: Barter Bank Account)
    6. Select Save and Close.

 

After that, let's record your invoices and their payments.

 

Finally, enter and pay the bill for the barter transaction.
Enter bill:
    1. Click on the Plus "+" icon.
    2. Under Vendors, select Bill.
    3. Fill in the required information.
Pay the bill:
    1. Click on the Plus "+" icon.
    2. Under Vendors, select Bill.
    3. In the Payment Account drop-down, select the barter bank account created above.
    4. Put a check for that bill under the Pay column.
    5. Enter the amount.
    6. Click Save.

 

Feel free to read this article for your reference: How to Record a Barter Transaction.

 

It'll be our pleasure to help you with your other concerns. Have a good day!

Level 2

Vendor invoices paid through settlement from attorney's checking account

Thank you Mark for your guidance!  It is greatly appreciated!

 

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