How to record a bartering transaction for a customer

Bartering transactions are commonly used to exchange goods or services (non-cash transactions), and are the best way to track the exchange between you and your customer. The bartering transaction will allow you to directly link the transaction to a specific invoice and show that amount as a credit/payment to your customer. This also allows you to link the payment to a specific expense account with the same transaction. With a little editing to your invoices using the statement editor, you can show the detail of the payment directly on your invoice.

1.  Creating a Bartering account:

  • From the menu bar, select Company > Chart of Accounts
  • Right click anywhere on the Chart of Accounts screen and select New
  • Choose Bank as the account type, and select Continue
  • Name the new account Bartering and enter an account number (100-115)
  • Click Save & Close

NOTE: The Bartering account should always show $0 when you are finished with the process

NOTE: Once the bartering account is created, you will not need to recreate it for future bartering transactions.

2.  Creating a Vendor account for your customer:

  • From the menu bar, select Vendors > Vendor Center
  • On the top left of the Vendor Center window select New Vendor from the New Vendor drop down menu
  • List your customers name in the Vendor Name window and differentiate the name by adding “-Bartering” at the end of the name (EX: Joe’s BBQ – Bartering)

3.  Create a Bill for the trade amount and mark as Paid:

  • From the home screen, select Enter Bills, and enter the bill as if you were making a purchase from the vendor
  • Once the bill is created and linked to the correct account, click Save & Close
  • From the home screen, select Pay Bills
  • Check the box next to the fictitious bill you would like to pay
  • On the bottom right of the Pay Bills window, under Account, select the Bartering account number
  • Select Pay Selected Bills
  • Enter the check # as “Barter”, and select Done

4.  Apply payment to invoice:

  • From the Home Screen, select Receive Payment
  • From the RECEIVED FROM drop down menu, select the Customer who’s invoice you want to apply the payment to
  • Enter the payment amount
  • Enter the payment type as a check, and select Save & Close

5.  Record deposit of fictitious payment:

  • From the Home Screen, select Record Deposits
  • Select the payment that you have created to apply to the invoice, and select OK
  • From the Make Deposits screen, select Save & Close

NOTE: At this time, your Barter account should have a $0 balance. DO NOT proceed until this account reflects a $0 balance

6.  Printing the invoice to reflect the payment:

  • From the Home Screen, hit the “Ctrl+ F” keys on your keyboard to access the Find screen
  • Select the customer’s bartering account from the Customer: Job drop down
  • Click on the blue Find button
  • Double click on the correct invoice from the list
  • Click on the Print drop down button, select Invoice, and print your invoice to your desired printer

NOTE: Your Bartering payment should now be reflected on the bottom of your Create Invoice screen. This amount will not be reflected on the invoice unless you have a custom template set up to do so.