Inventory Received as payment against credit

Hi there, @Ensobila.

Whenever you and your supplier trade goods and services. An invoice and a bill for the goods or services you're trading would be entered to document the exchange. To start, you can create a barter bank account. Here’s how:

1. Go to the Accounting menu and select Chart of Accounts (COA).
2. Tap the New button and select Bank for the Account Type and Cash on hand for the Detail Type.
3. Enter the account name that you can easily remember.
4. Then, click Save and close.

Once done, create an invoice. Then, you can receive its payment and deposit this to the Barter account you created. Here's how you can enter the payment:

1. Tap the + New icon and select Receive payments under Customers.
2. Choose the barter customer.
3. Choose a Payment method and pick the barter account under the Deposit to dropdown.
4. Fill in the fields with the correct information.
5. Select Save and Close.

To enter a bill for a barter transaction:

1. Tap the + New icon again and select Bill under Vendors. Then, fill in the fields with the correct information.
2. Click Save.

Here's how to pay the entry:

1. Navigate to Vendors from the + New icon and tap Pay Bills.
2. Choose the bill you want to pay.
3. From the Payment account dropdown menu, pick the barter bank account.
4. Click Save.

Additionally, you can refer to this article for more details about the process: Record a barter transaction.

Comment below for any other queries about recording transactions in QBO. I'm prepared to answer them at any time. Have a great day!

I need help recording grain repayments from farmers. My company sells agricultural inputs (seeds, fertilizer, etc.) to farmers in exchange for later repayments in the form of grains (maize and soya beans). When attempting to record repayment of the grains using the barter trade method, I noticed that it affects my Cost of Sales/Purchases account, resulting in increased expenses. I would greatly appreciate assistance from the community in addressing this matter and determining the most suitable approach for accurately recording the receipt of grains as repayments