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How do I properly apply a vendor credit as a payment to that vedors customer account when they are both a customer and vendor?

 
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How do I properly apply a vendor credit as a payment to that vedors customer account when they are both a customer and vendor?

Welcome and thanks for posting in the Community, @Urson.

 

Based on that information, you can consider setting up a Barter account in QuickBooks Desktop (QBDT). Then, create Journal Entry (JE) to move the credit from the vendor to the customer.

 

To create a Barter account, refer to these steps:

 

  1. In QBDT, go to the Lists menu at the top to get to the Chart of Accounts3.PNG
  2. Tick the Account drop-down at the bottom and pick New4.PNG
  3. Choose Bank, then Continue5.PNG
  4. Type Barter in the Account Name then hit Save & Close.

 

Once done, make a JE to move the credit to the Barter account. Then, create another one to transfer it from the Barter account to the customer. Before doing so, I recommend consulting an accountant on what specific accounts to use recording the transaction to ensure the accuracy of your books. 

 

Just in case, I'll add these articles for further guidance:

 

 

Reach out to me in the comment section below if you have any other questions or concerns. I'm always here to answer them. Have a wonderful rest of the day!

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