Record a barter transaction

Learn how to record a barter transaction in QuickBooks Online.

A barter transaction happens when you and your supplier exchange goods and services. To record the exchange, you’d enter an invoice and a bill to record the products or services you’re exchanging. Here’s how.

Step 1: Set up the barter bank account

1. Go to Settings ⚙ then select Chart of accounts.
2. Select New to create a new account.
3. Under the Account Type ▼ dropdown, select Bank.
4. Under the Detail Type ▼ dropdown, select Cash on hand.
5. Enter the account name. (ex. Barter Bank Account)
6. Select Save and Close.

Step 2: Create an invoice and receive payment

Create an invoice

1. Select + New.
2. Select Invoice.
3. From the Customer ▼ dropdown, select your supplier’s (barter partner) name.
4. Enter all the necessary information.
5. Select Save and Close.

Receive payment for the invoice

1. Select + New.
2. Select Receive payment.
3. From the Customer ▼ dropdown, select your supplier’s (barter partner) name.
   Note: The details and info from the invoice you’ve created earlier will appear under Outstanding Transactions.
4. Fill in the date and amount.
5. Select the Payment method ▼ dropdown, then Add new.
6. Enter “Barter” in the Name field, then select Save.
7. Select the Deposit to ▼ dropdown, then select your barter bank account.
8. Select Save and close.

Step 3: Enter and pay the bill

Create a bill

1. Select + New.
2. Select Bill.
3. From the Supplier ▼ dropdown, select your barter partner.
4. Enter all the necessary information.
5. Select Save.

Pay the bill

1. Select + New.
2. Select Pay bills.
3. From the Payment account ▼ dropdown, select your barter bank account.
4. Select the bill you’ve created earlier.
5. Select Make payment under Balance Due.
6. Enter the amount.
7. Select Save and close.

You now have a record of the exchange. If the exchange of goods isn’t equal in value, the invoice or bill will show a balance due or credit.