I have a vendor who is also a customer - they invoice us monthly w/ a credit to be applied to their balance - how would I record this?

Good to see you here, @user6910,

I can guide you through the steps on how to handle your concern in QuickBooks Online.

You can create barter transactions to record an exchange between you and the vendor. For this, enter an invoice for a sale they owe your company and a bill. I've outlined the steps for you to follow below:

Step 1: Create a Barter bank account.

1. From the Settings ⚙ icon, select Chart of Accounts.
2. Press New to create a new account.
3. Choose Bank for the Account Type ▼, and Cash on hand for the Detail Type ▼.
4. Enter the account name. (ex. Barter Bank Account)
5. Hit Save and Close.

Before you enter the transactions, make sure to add the supplier to your vendor and customers 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.

1. From the Create icon ⨁, select Invoice.
2. Select a name from the Customer ▼ drop-down.
3. Enter all the necessary information. Select Save.
4. To receive payment for the invoice, go back to the Create icon ⨁ then Receive Payment.
5. Choose the customer from the Customer ▼ drop-down.
6. Fill in the date and amount.
7. Pick a Payment method, then use Add new.
8. Add “Barter” in the Name field, then Save.
9. Utilize the barter bank account in the Deposit to ▼ drop-down.
10. Hit Save and close when done.

Step 3: Enter and pay the bill for the barter transaction and the bank.

1. From the Create icon ⨁, select Bill.
2. Select a Vendor name, select your barter partner, the one who receives the commission.
3. Add all the necessary information, then hit Save.
4. To pay the bill, go to the Create icon ⨁ then Pay Bills.
5. From the Payment account ▼ drop-down, choose the barter bank account.
6. Mark the bill you’ve created earlier for the commission, then pick Make payment under Balance Due.
7. Put the amount before pressing Save and close.

I'm here if you need further help with recording the transactions. Wishing you a great and productive day!

What would this do for 1099 reporting though? We didn't actually pay that money, it is just a swap for services at a set amount. 

I can share some information about 1099s, @user6910.

You'll just need to set this vendor to track payments for 1099. Once done, QuickBooks will start tracking all of their payments behind the scenes. 

Here's how:

1. Go to the Expenses menu and select Vendors.
2. Select the vendor you want to track and open their profile.
3. Click on Edit.
4. Select and check the Track payments for 1099 checkbox.

From here, your 1099s are ready to e-file or print.

Refer to this article for more information about setting up your contractor and tracking contractor payments: Set up contractors and track them for 1099s in QuickBooks.

During the tax season, you can now prepare and file your Federal 1099s: Create and file 1099s using QuickBooks Online.

I'm always here if you have questions about 1099s. Let me know by leaving a reply below. Keep safe and have a wonderful day!