Customer and vendor are the same

@Pitpat1015  Bartering does tend to take a bit more creative accounting than usual, but I expect your company prefers to keep doing it that way anyway.

At any rate, bumping this; I've seen someone describe a way to do this before. JEs would technically get the job done, but they tend to leave residue that QB's normal systems wouldn't. I think it involved using an account as a pass-through account to bridge the gap between customer and vendor.

Unfortunately, I forget what it is exactly, but I'd be interested in a refresher myself.

I'd be happy to help you manage the Purchase Order (PO) balance and invoice balance for your client, who serves as both a customer and a vendor in QuickBooks Desktop (QBDT), Pitpat.

Since your client has a dual role, we'll need to record a barter transaction to offset the amounts owed in both directions. However, please note that the PO must be converted to a bill to complete the process.

First, make sure to add your client (barter partner) as a vendor (for the bill) and customer (for the invoice). Make one of the names slightly different since you can't have the same name in both lists. Then, create a barter bank account. Here's how:

1. Go to Lists and select Chart of Accounts.
   
   
   
   
2. Click the Account dropdown at the bottom part of the screen, then hit New.
   
   
   
   
3. From the account type list, choose and tick Bank. Then, click Continue.
   
   
   
   
4. Type barter bank account or any name in the Account Name field to help you identify the account.
   
   
   
   
5. Hit Save & Close.

Second, open the invoice you previously sent, and modify the Customer section to the vendor's barter partner name. Then, hit Save & Close. Additionally, follow the steps below to receive payment for the invoice:

1. Go to Customers and click Receive Payments.
2. Choose the barter customer.
3. Click MORE and select the barter bank account.
4. Complete the necessary fields and hit Save & Close.

Then, convert the PO to a bill. After that, create and pay the bill. Here's how:

1. Go to Vendors and click Enter Bills.
2. Complete the necessary fields.
3. Hit Save & Close.

To pay the bill:

1. Navigate to the Vendors menu and select Pay Bills.
2. Open the bill you previously created.
3. From the Account dropdown, pick the barter bank account.
4. Hit the Pay Selected Bills button, then click Done.

Moreover, please know that if the PO balance and invoice balance aren't equal in value, the invoice or bill will show a balance due or credit.

Finally, I'll share this article to guide you in properly managing credits and refunds in QBDT: Give your customer credit or refund in QuickBooks Desktop for Windows.

If you have other questions about handling barter transactions in QBDT, feel free to add a reply in the comment section below. The Community team is always available to offer prompt assistance.