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Level 2

Reimbursement to customer that is used to pay a third party.

I 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
Best answer 02-08-2019

Best Answers
Highlighted
QuickBooks Team

Reimbursement to customer that is used to pay a third party.

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:

  1. Click Lists, then go to Chart of Accounts.
  2. Click Account, then choose New.
  3. Choose Bank, then click Continue.
  4. Enter a desired name (Example: Barter bank).
  5. Click Save & Close.

Then, create and receive the invoice payment for the barter transaction. Here's how:

  1. Click Customers, then choose Create Invoices.
  2. Enter the necessary information.
  3. Receive the payment by clicking Receive Payments in the Invoice window.
  4. In the Customer Payment window, click the drop-down arrow under More, then choose Add New Payment Method.
  5. Enter barter, then click OK.
  6. Click Save & Close.

Next, deposit the payment to the barter account. Here's how:

  1. Click Banking, then choose Make Deposits.
  2. In the Payments to Deposit window, choose the payment you did earlier, then click OK.
  3. Click the Deposit To drop-down arrow, then choose the barter account.
  4. Click Save and close.

Lastly, enter the bill and pay it for the barter transaction. Here's how:

  1. Click Vendors, then choose Enter Bills.
  2. Fill in the necessary information.
  3. Pay the bill by clicking Pay Bill in the Bill window.
  4. Choose the bill.
  5. Click the Account drop-down arrow, then choose the barter account.
  6. Click Pay Selected Bills.

We're just around if you need help from us. Have a good day! 

View solution in original post

QuickBooks Team

Reimbursement to customer that is used to pay a third party.

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:

 

  1. Go to Banking at the top menu bar.
  2. Select Write Checks.
  3. Click on the drop-down for Bank Account and select the correct bank.
  4. Fill in the necessary fields.
  5. Enter the payee in the Pay to the Order of box.
  6. Input the correct amount.
  7. Once done, click on Save & Close/Save & New.

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.

 

View solution in original post

Highlighted
Level 2

Reimbursement to customer that is used to pay a third party.

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.

View solution in original post

Highlighted
Level 2

Reimbursement to customer that is used to pay a third party.

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.

 

View solution in original post

10 Comments
Highlighted
QuickBooks Team

Reimbursement to customer that is used to pay a third party.

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:

  1. Click Lists, then go to Chart of Accounts.
  2. Click Account, then choose New.
  3. Choose Bank, then click Continue.
  4. Enter a desired name (Example: Barter bank).
  5. Click Save & Close.

Then, create and receive the invoice payment for the barter transaction. Here's how:

  1. Click Customers, then choose Create Invoices.
  2. Enter the necessary information.
  3. Receive the payment by clicking Receive Payments in the Invoice window.
  4. In the Customer Payment window, click the drop-down arrow under More, then choose Add New Payment Method.
  5. Enter barter, then click OK.
  6. Click Save & Close.

Next, deposit the payment to the barter account. Here's how:

  1. Click Banking, then choose Make Deposits.
  2. In the Payments to Deposit window, choose the payment you did earlier, then click OK.
  3. Click the Deposit To drop-down arrow, then choose the barter account.
  4. Click Save and close.

Lastly, enter the bill and pay it for the barter transaction. Here's how:

  1. Click Vendors, then choose Enter Bills.
  2. Fill in the necessary information.
  3. Pay the bill by clicking Pay Bill in the Bill window.
  4. Choose the bill.
  5. Click the Account drop-down arrow, then choose the barter account.
  6. Click Pay Selected Bills.

We're just around if you need help from us. Have a good day! 

View solution in original post

Highlighted
Level 2

Reimbursement to customer that is used to pay a third party.

Thanks for your prompt response.

But let's consider a scenario where you have to pay one of the third parties in cash instead of deducting from his ledger.
How can I fix that?
Have tried it and I think I am not doing it the right way.
Please assist me.
Highlighted
Level 2

Reimbursement to customer that is used to pay a third party.

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.

QuickBooks Team

Reimbursement to customer that is used to pay a third party.

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:

 

  1. Go to Banking at the top menu bar.
  2. Select Write Checks.
  3. Click on the drop-down for Bank Account and select the correct bank.
  4. Fill in the necessary fields.
  5. Enter the payee in the Pay to the Order of box.
  6. Input the correct amount.
  7. Once done, click on Save & Close/Save & New.

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.

 

View solution in original post

Highlighted
Level 2

Reimbursement to customer that is used to pay a third party.

 
Highlighted
Level 2

Reimbursement to customer that is used to pay a third party.

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.

View solution in original post

Highlighted
Level 2

Reimbursement to customer that is used to pay a third party.

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

Highlighted
QuickBooks Team

Reimbursement to customer that is used to pay a third party.

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:

  1. Go to: https://help.quickbooks.intuit.com/en_US/contact.
  2. Choose your QuickBooks Product.
  3. Select your QuickBooks version.
  4. On the Contact Us page, click a topic.
  5. Click on the Get Phone Number button to see the support number.

Let me know if you have any other QuickBooks questions by adding a comment below. I'm always here to help you!

Highlighted
Level 2

Reimbursement to customer that is used to pay a third party.

 
Highlighted
Level 2

Reimbursement to customer that is used to pay a third party.

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.

 

View solution in original post

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