A barter transaction is one in which you sell goods and services to the same person or company (Barteree) from whom buy other goods or services.
The steps that you must do to enter barter transactions are to
- set up the other person / company on your customer list and your vendor list with slightly different names
- set up a special bank account.
You will receive payments into the barter account and you will pay bills out of the barter account. Your barter account should have a zero balance.
1. Set up the barteree as a customer and a vendor
- Open your vendor center and add the barteree to your vendor list with a “(V)” after the name.
- Open your customer center and add the barteree to your customer list with a “(C)” after the name.
2. Set up your barter bank account
- In the menu bar, select List and then select Chart of Accounts.
- At the bottom left click Account and then click New.
- Click Bank and then click Continue.
- Enter a name for the bank account (e.g., Barter Exchange).
- Click Save and then click Close.
3. Enter bills and invoices
- Enter invoices and bills as normally would.
- Be sure to use the Bartee (C) on invoices and Barteree (V) on bills.
4. Receive payment(s) from the Bartere (C)
- In the menu bar, select Customers and then Receive Payments.
- Enter the barteree with a (C) from the drop down list.
- Use the Barter Bank Account, do not use Undeposited Funds.
- If the invoice is greater than the bill, receive the amount of the bill into the barter account and the balance into your regular account.
- If the invoice is less than the bill, receive the amount of the invoice into the barter account.
- Select the Invoice being paid.
- Choose Save & Close.
5. Pay the bill from the Barteree (V)
- In the menu bar, select Vendor and then Pay Bills.
- Pay the bill from Barteree (V) out of the Barter Bank Account.
- If the bill is greater than your invoice to Barteree (C), pay the balance of the bill from your regular account.