I sold shoes to a customer and invoiced him $100. I used his plumbing services and he invoiced me for $200 but he told me to just payed the balance of $100 ,which I did with a check. But instead of me giving him the other $100 I gave him the shoes worth $100.
How do I entered all this information in quickbooks and my bank statements. To record my sales and my expenses/repairs.
My invoice to him is still open in QB for the shoes of $100 that needs to be payed (to record my sales etc.) and in my bank statement theres is the check of $100 that I made out to him for the balance.
I appreciate the in-depth details you shared on your post. Let's make sure you're able to record your transactions correctly in QuickBooks Desktop.
We can enter a barter transaction in QuickBooks to record the exchange between you and the supplier. Let me guide you on how to do that:
Step 1: Create a Barter bank account.
Go to the Lists menu.
Select Chart of Accounts.
Right-click anywhere then click New.
Choose Bank then Continue.
Enter the Account Name. (Example: Cash on Hand).
Click Save and Close.
Before you enter the transactions, make sure to add the partner to your vendor and customer list. Please note that QuickBooks does not allow adding identical names, please make sure to alter the characters if necessary.
Step 2: Create and receive payment for the invoice for the barter transaction
Click the Customers menu.
Hit Create Invoices.
Enter the customer name in the Customer:Job field.
Fill the Date and Amount.
Click the Receive Payments icon at the top of the invoice.
Press Yes on the prompt.
In the Customer Payment window, click More.
Choose Add New Payment Method.
Type Barter in the Payment Method field. Select Cash as the Payment Type.
In the Deposit To field, enter the barter bank account (Cash on Hand). Note: If you don't have this option, it's possible that the Undeposited Funds is your default deposit account. To check that, go to Edit>Preferences>Payments>Company Preferences. Once done, uncheck the Use Undeposited Funds as a default deposit to account box.
Hit Save & Close.
Step 3: Enter and pay the bill for the barter transaction and the bank.
Click the Vendors tab.
Pick Create Bills.
Enter the supplier's name in the Vendor field.
On the Amount field, enter $200.00.
Click the Pay Bill icon.
Hit Yes on the prompt.
On the Account field, select the barter account (Cash On Hand).
On the Amt. To Pay column, enter the amount paid for the invoice of $100 to relieve the balance (sale) on the barter account.
Press the Pay Selected Bills button then hit Pay More Bills.
Mark the same vendor, the amount should show the remaining balance of $100.
This time, select which bank this payment is cleared in the Account field.
Click Pay Selected Bills.
That should do it. I'm confident those steps will get you pointed to the right direction, @Eve2019. Please let me know how this goes. I'm here if you need further help. Wishing you a great and productive day!
I followed your steps. My last question is how should the invoice I created for this person show on my end letting me know its been paid. Because when I checked Customer invoice I still see the $200 open balance.
I appreciate you following the steps shared by my colleague to record the transaction correctly in QuickBooks. Allow me to step in for a moment and help with the open invoice.
Step 2 provided above should fix the open transaction and mark it as paid. If this is not the case, make sure you don’t have an existing invoice when performing the solution.
After creating a Barter account, you’re advised to make an invoice and receive payment against it. If you already have one and enter another instead of applying the payment directly, the customer profile will show an open balance.
You can remove the $200 by deleting the previous invoice. The instructions given by @Anonymous should take care of recording this entry in QuickBooks.
Here’s how to delete the transaction:
Go to Customers menu and select Customer Center.
Select the customer name.
Choose the Transactions tab and select Invoices from the Show drop-down.
Locate the invoice and open it.
Click Delete at the top of the Create Invoice screen.