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Level 1

Vendor now a customer but wants us to deduct from our bill instead of paying the invoice

Hello,

I use QB desktop. I have a vendor that ordered some items from us so I created an invoice but instead they said to deduct if from what we owe them. How do I reconcile the invoice and I assume I have to do a journal entry. Any help would be greatly appreciated

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Best answer 12-07-2018

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Level 15

Vendor now a customer but wants us to deduct from our bill instead of paying the invoice

You avoid JE for anything that uses names, for AP, AR, Sales, Sales Taxes, QB Payroll, QB Inventory.

 

You need a bank account and name it Barter or Clearing.

 

Process the amount being swapped, as Receive Payment from the Customer Name and Deposit to Barter Bank. Use Barter Bank to pay that same amount as the portion of the Bill you owe. For this one date, then, Barter Bank ends at 0. That's how you know you did it right.

 

Now process the rest of the funds; one of you likely still owes the other in reality. That part is the Real Banking to be done.

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Highlighted
Level 15

Vendor now a customer but wants us to deduct from our bill instead of paying the invoice

You avoid JE for anything that uses names, for AP, AR, Sales, Sales Taxes, QB Payroll, QB Inventory.

 

You need a bank account and name it Barter or Clearing.

 

Process the amount being swapped, as Receive Payment from the Customer Name and Deposit to Barter Bank. Use Barter Bank to pay that same amount as the portion of the Bill you owe. For this one date, then, Barter Bank ends at 0. That's how you know you did it right.

 

Now process the rest of the funds; one of you likely still owes the other in reality. That part is the Real Banking to be done.

View solution in original post

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Level 1

Vendor now a customer but wants us to deduct from our bill instead of paying the invoice

Makes sense. Thanks so much!!

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