How do i enter a trade in quickbooks? I did some work for my landlord. i wrote him a check for rent subtracting the amount of the invoice and applied that to the "rent" expense account. how do i pay the invoice for the work i performed and apply that amount to the rent expense account?
You would use a Check to the Landlord listing the Gross Rent as expense. On the next line, using a negative, post this to an Other Current Asset account. This account is named Vendor Prepayment.
You have the invoice for their sale as a Customer name. You need to make an Other Charge type item linked to that Other Current Asset account; name it Settlement as Barter. Put this item on a Credit Memo and the amount owed to you from that invoice. Apply the credit memo to the invoice.
Now this Other Current Asset account is 0. You have captured Gross rent in the name of the landlord for proper tracking and reporting, and you have proper Customer Sales data.
You just have no Banking for that split amount that you bartered.