Need help with QuickBooks

Sorry it took so long to get back to you.

For bartering there are several steps necessary.

-- Firstly, make sure the vendor you barter with has TWO entries; one entry as a customer you provide services for, and one entry as a vendor you purchase from. Many folks do this by keeping the name the same, and adding a descriptive identifier in brackets at the end - {C}for Customer, for example. So for your supplier, lets call him "EGYPT supplies" you would have a VENDOR record for "EGYPT supplies" AND a customer record "EGYPT supplies{C}".

--Next, add an account in the account list for barter (not strictly necessary, and I did without it for months before someone in the newsgroup pointed it out, but it DOES make it nice and clean).

Record vendor bills as they arrive. Record your services to the vendor as you normally would any customer, making sure to use the CUSTOMER name.

At the end of the month:

-Use a journal entry to credit "Egypt supplies{C}" Line 1: Account: Accounts Receivable, CREDIT: $100, Name: EGYPT supplies{C} Line 2: Account: Barter, Debit:$100 Apply the credit you created to the invoice you issued.

-In the receive payments window select "EGYPT supplies{C}" and apply the credit you created to the invoice.

-Create a journal entry to offset the bills you owe. Line 1: Account: Accounts Payable, DEBIT: $100, Memo: Issue vendor credit for work done, Name: EGYPT supplies Line 2: Account: Barter, CREDIT: $100, Memo: (your company) CR Memo #xxx Make sure to take the credit when you pay your bill.

-In the Pay Bills screen select the bill(s) for EGYPT supplies and apply the credit you created using the journal entry.

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AN ALTERNATIVE TO THE JOURNAL ENTRY METHODS If you are uncomfortable with journal entries, or if your accountant/boss does not wish them used, you may use QB's customer credit memo and vendor bill credit screens.

--Add an item in the item list, I use a service item, call it "barter" or "trade for services" or anything that works for you. Associate the item with the barter account you created. Make sure the item is non-taxable. I added a description to the item "Barter - work done for goods/services. Applied to (your company) Inv #xxx"

To create the customer credit, use the "Create Credit Memos/Refunds" screen under the customer menu. Create a credit memo for "EGYPT supplies{C}", using the barter item you created. In the description, reference your companies $100 invoice.

To create the vendor credit, use the "Enter Bills" screen under the vendor window. Select "credit". Enter the $100 credit using the barter account.

Post the lower balance to both supplier and customer via a contra account and post the bank transaction to clear the remaining balance.