QuickBooks Guide – Entering Barter Transactions


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.

iconStep-by-Step Instructions:

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.

List Chart of Accounts Account 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.Random
  • 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.

Vendors 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.

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