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Join nowI use of quickbooks 2016 premier
I am a distributor, I buy goods on credits from my vendor and pay on or before month end. My vendor asks me to pay 5 third parties (#30 each) and they are also my customers. Vendor credits my account statement on month end with (#150).
I usually deduct the said amount from my customers ledgers.
Please how do I handle this in QuickBooks?
Solved! Go to Solution.
Hey there, Ezenwa90.
You can record this as a barter transaction. This occurs when you and your vendor exchange goods and services.
I can walk you through with the steps.
First, you'll have to set up a barter bank account. Here's how:
Then, create and receive the invoice payment for the barter transaction. Here's how:
Next, deposit the payment to the barter account. Here's how:
Lastly, enter the bill and pay it for the barter transaction. Here's how:
We're just around if you need help from us. Have a good day!
Thanks for coming back to the QuickBooks Community, ezenwa90.
I can help efficiently track the cash payment for your third-party.
In this scenario, you can write a check to input the transaction. When recording the payment, select the correct account to ensure it will not affect the customer balance.
To create a check:
I'm also adding an article to visually guide you through the steps: Create, modify, and print checks.
Stay in touch if you additional questions about managing transactions in QuickBooks. Please know that I’m just a comment away. Have a great rest of your day.
The barter account did not balance when I used write check to pay the other third party that is not my customer. For example,
Vendor refunds 150,000 to me, I received it into the barter account. Then, I paid four customers 30,000 each using receive payment in to their accounts.
If I use write cheque to pay the fifth person, the barter account will not balance.
Barter Account
From vendor. -150,000
Mr A. (Payment) 30,000
Mr B. (Payment) 30,000
Mr C. (Payment) 30,000
Mr D. (Payment) 30,000
Mr E (cheque) -30,000
Balance. -60,000
Please assist me.
Thanks... But I have been able to solve the issue. Since am paying cash which will not be recorded as expenses cos it will be refunded by the vendor.
I had to transfer 30,000 from my petty cash to the barter account which zeros out the barter account.
Then in memo, I referenced it as payment to "third party" who is not my customer.
Hey there, Ezenwa90.
You can record this as a barter transaction. This occurs when you and your vendor exchange goods and services.
I can walk you through with the steps.
First, you'll have to set up a barter bank account. Here's how:
Then, create and receive the invoice payment for the barter transaction. Here's how:
Next, deposit the payment to the barter account. Here's how:
Lastly, enter the bill and pay it for the barter transaction. Here's how:
We're just around if you need help from us. Have a good day!
Thanks for your prompt response.
Thanks for your prompt response.
But let's consider a scenario where you have to pay one of the third parties cash and he is not your customer.
How can I fix that?
Have tried it and I think I am not doing it the right way.
Please assist me.
Thanks for coming back to the QuickBooks Community, ezenwa90.
I can help efficiently track the cash payment for your third-party.
In this scenario, you can write a check to input the transaction. When recording the payment, select the correct account to ensure it will not affect the customer balance.
To create a check:
I'm also adding an article to visually guide you through the steps: Create, modify, and print checks.
Stay in touch if you additional questions about managing transactions in QuickBooks. Please know that I’m just a comment away. Have a great rest of your day.
The barter account did not balance when I used write check to pay the other third party that is not my customer. For example,
Vendor refunds 150,000 to me, I received it into the barter account. Then, I paid four customers 30,000 each using receive payment in to their accounts.
If I use write cheque to pay the fifth person, the barter account will not balance.
Barter Account
From vendor. -150,000
Mr A. (Payment) 30,000
Mr B. (Payment) 30,000
Mr C. (Payment) 30,000
Mr D. (Payment) 30,000
Mr E (cheque) -30,000
Balance. -60,000
Please assist me.
The barter account did not balance when I used write check to pay the other third party that is not a customer. For example,
Vendor refunds 150,000 to me, I received it into the barter account. Then, I paid four customers 30,000 each using receive payment in to their accounts.
If I use write cheque to pay the fifth person, the barter account will not balance.
Barter Account
From vendor. -150,000
Mr A. (Payment) 30,000
Mr B. (Payment) 30,000
Mr C. (Payment) 30,000
Mr D. (Payment) 30,000
Mr E (cheque) -30,000
Balance. -60,000
Hi there, @ezenwa90.
Thank you for getting back to us here in the Community. I'm here to help share additional information about recording a payment for a third-party customer.
Based on the scenario you've given above, creating a check doubles the balance for the third-party customer. Since you do receive a payment for the 4 customers, you can also do the same thing for the fifth customer, so the balance of the barter to zero out.
If you need further assistance, you may get in touch with our QuickBooks Support Team. For the support's contact information:
Let me know if you have any other QuickBooks questions by adding a comment below. I'm always here to help you!
Thanks... But I have been able to solve the issue. Since am paying cash which will not be recorded as expenses cos it will be refunded by the vendor.
I had to transfer 30,000 from my petty cash to the barter account which zeros out the barter account.
Then in memo, I referenced it as payment to "third party" who is not my customer.
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