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Community Explorer **

How do I invoice when the vendor is paid through customer's credit card

I am migrating a tour company to quickbooks online, we make our final payments to cruise companies with the client's credit card, I need to show this on their invoices as paid with out the money passing through the company. Any ideas?

Solved
Best answer 06-20-2019

Accepted Solutions
Moderator

Re: How do I invoice when the vendor is paid through customer's credit card

Hi there, AJSTI,

 

I appreciate you reaching out to the Community and providing detailed information. I can help share information about recording customers credit card as payment to the vendor.

 

In your case, you can record a barter transaction. You can use this transaction when you and your vendor exchange goods and services. To be able to record the exchange, you'll need to enter an invoice and bill, then set up barter bank account.

 

To set up barter bank account, here's what you'll need to do:

  1. Click the Gear icon at the top.
  2. Select Chart of Accounts under Your Company column.
  3. Click New button at the upper right hand.
  4. Choose Bank as the Account Type and Cash on Hand for the Detail Type.
  5. Enter the account name.
  6. Click Save and Close.

Next, create and receive payment for the invoice for the barter transaction. Follow these steps:

  1. Click the Plus icon at the top.
  2. Select Invoice under Customers column.
  3. Enter the necessary information.
  4. Click Save and close.
  5. Click the Plus icon at the top again, select Receive Payment under Customers column.
  6. Choose the barter customer in the Customer drop-down, then fill the date and amount.
  7. In the Payment Method, select +Add new.
  8. Enter Barter in the name field, then select Save.
  9. In the Deposit to field, select the barter bank account created.
  10. Select the Invoice, click Save and close.

Lastly, enter and pay the bill for the barter transaction. Here's how:

  1. Click the Plus icon at the top.
  2. Select Bill under Vendors column.
  3. Enter the necessary information.
  4. Click Save and close.
  5. Click the Plus icon at the top again, select Pay Bills under Vendors column.
  6. Choose the barter customer in the Customer drop-down, then fill the date and amount.
  7. In the Payment Account drop-down, select the barter bank account created above.
  8. Put a check for that bill under the Pay column.
  9. Enter amount, then click Save and close.

For the detailed steps about this process, you can read this article:

How to record a barter transaction.

 

For future reference, you can also check this article for other ways to record credit card payments: How to record credit card payments.

 

Please keep me posted if you need further assistance with the process. I'm always here to assist in any way I can. Have a great day!

4 Comments
Moderator

Re: How do I invoice when the vendor is paid through customer's credit card

Hi there, AJSTI,

 

I appreciate you reaching out to the Community and providing detailed information. I can help share information about recording customers credit card as payment to the vendor.

 

In your case, you can record a barter transaction. You can use this transaction when you and your vendor exchange goods and services. To be able to record the exchange, you'll need to enter an invoice and bill, then set up barter bank account.

 

To set up barter bank account, here's what you'll need to do:

  1. Click the Gear icon at the top.
  2. Select Chart of Accounts under Your Company column.
  3. Click New button at the upper right hand.
  4. Choose Bank as the Account Type and Cash on Hand for the Detail Type.
  5. Enter the account name.
  6. Click Save and Close.

Next, create and receive payment for the invoice for the barter transaction. Follow these steps:

  1. Click the Plus icon at the top.
  2. Select Invoice under Customers column.
  3. Enter the necessary information.
  4. Click Save and close.
  5. Click the Plus icon at the top again, select Receive Payment under Customers column.
  6. Choose the barter customer in the Customer drop-down, then fill the date and amount.
  7. In the Payment Method, select +Add new.
  8. Enter Barter in the name field, then select Save.
  9. In the Deposit to field, select the barter bank account created.
  10. Select the Invoice, click Save and close.

Lastly, enter and pay the bill for the barter transaction. Here's how:

  1. Click the Plus icon at the top.
  2. Select Bill under Vendors column.
  3. Enter the necessary information.
  4. Click Save and close.
  5. Click the Plus icon at the top again, select Pay Bills under Vendors column.
  6. Choose the barter customer in the Customer drop-down, then fill the date and amount.
  7. In the Payment Account drop-down, select the barter bank account created above.
  8. Put a check for that bill under the Pay column.
  9. Enter amount, then click Save and close.

For the detailed steps about this process, you can read this article:

How to record a barter transaction.

 

For future reference, you can also check this article for other ways to record credit card payments: How to record credit card payments.

 

Please keep me posted if you need further assistance with the process. I'm always here to assist in any way I can. Have a great day!

Community Explorer **

Re: How do I invoice when the vendor is paid through customer's credit card

So when I pay the cruise line with the customer credit card, I then run the invoice as if it was paid by us through the barter account? This would allow us to show it paid but it won't show on the invoice that it was paid with the customer credit card... right?

 

Then I would treat this like a bank account? There is no statement to reconcile against...

 

Also, would I need a different barter account for each of my cruise lines? or can I do all of them through one?

 

 

Established Community Backer ***

Re: How do I invoice when the vendor is paid through customer's credit card

You can use just one Clearing account for these as the current balance will always return to 0. I would still reconcile the account on a semi regular basis which guarantees that it is always axwash.

 

The customer invoice will show PAID since you received payment but their card number will not appear unless you add it in a text field. You can enter their payment type as cc as long as you are not processing it (if you did the money would hit your account)

Community Explorer **

Re: How do I invoice when the vendor is paid through customer's credit card

Ok, this is great! Is there a reason that I shouldn't set it up as a barter credit card account instead, call it "Paid Vendor Directly" that way it will show as a credit card payment.

 

So, because I create the bill and pay it with the same barter account, it will constantly be zeroing itself out?

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