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.
