Barter transaction QuickBooks Online

barter

Barter transaction is a simple transaction in QuickBooks Online (QBO) once you know the key component to it.  The secret ingredient is the "Barter" bank account.  It is the piece you need to flow the transactions through the books.

Create the bank account....

  1. Select the Gear icon and then choose Chart of Accounts.
  2. Create a new account by following these steps:
    • Select New and then choose Bank as the category type.
    • Select Checking as the Detail Type.
    • Type in the name of the account and name it Barter Bank Account.
    • Choose Save to record the transaction.

Record the Sale or Accounts Receivable transaction....

  • Choose the Create (+) icon and then select Invoice or Sales Receipt.
  • Fill out the invoice or sales receipt as you normally would and then Save it.
  • Choose the  Create + icon and then select Receive Payment. (Skip this step if using a sales receipt.)
  • Choose the Customer from the drop-down menu.
  • From the Payment Method drop-down menu, select Add New and then enter "Barter" in the name field.
  • Choose Save.
  • Select Deposit To: and then choose the Barter Bank Account.
  • Choose Save to record the transaction.

Record the Expense or Accounts Payable transaction....

  • Choose the Create (+) icon and then select Bill from the vendor that is now your customer or vice versa.
  • Fill out the bill as you normally would and then Save it.
  • Choose the Create + icon and then choose Pay Bill.
  • From the Payment Account drop-down menu, select the Barter Bank Account.
  • Select the bill you want to pay.
  • Enter the amount of the bill payment and then choose Save to record the transaction.

Recording the barter transaction....

Then record the transactions like they would normally be recorded as if you were being paid.  Use the Barter Bank Account to record the "payment" of the invoice and then to "pay" your vendor.  Since no money changed hands, these transactions are done for record purposes to show the income and the expense which basically wash each other out.  If the two transactions were not equal in value, the invoice or bill will show a balance due or credit. In that case, you will need to either pay one vendor (if you owe the customer/vendor) or Receive a Payment (if they owe you) to clear the balances owed.

Final words of wisdom:   If your business operates on a cash basis, the invoice and the bill payment should both be dated on the same date in order for them to be properly recorded in your records.  So, a simple transaction once you know the flow.  Here is a link to other Vendor blog posts on my website.

If you have any questions or would like to see a future video on another topic, please reach out to me on Facebook.

Lynda Artesani

Lynda Artesani is the president of Artesani Bookkeeping where she uses her expertise and organizational skills to help her clients thrive and become profitable. Lynda is a member of the Intuit Trainer Writer Network. She is an alumni member of the Intuit Advisory Board. Additionally, she is the first Expert Columnist for the QB Community forum. She is also a co-founder in a Facebook group called QB Community Live!