What am I doing wrong if I have an open Journal Entry? I also created a payment for the open invoice. Should I not have created a payment or Journal entry together?

Hi there, @accounts530.

Thank you for taking the time to post in the Community. I can provide you with some steps on how you can record this matter properly in QuickBooks Online (QBO).

Let's first delete the journal entry and the payment transaction so we can perform the process seamlessly. Once done, let's record a barter transaction since you and your customer are exchanging goods and services. To record this, generate an invoice and a bill to record the products or services you’re exchanging.

To start, let's set up a barter bank account. Here's how:

1. Go to Settings ⚙ and select Chart of accounts.
2. Select the New button.
3. Choose Expenses from the Account Type ▼ dropdown.
4. Enter the account name. (ex. Barter Bank Account)
5. Select Save and Close.
   

Once done, record the invoice payment for the open invoices. Then, since we're recording a barter transaction, you'll have to add your customer as a supplier as well. Simply change one of the names slightly because you cannot have the same name on both lists.

After that, you can now generate a bill and pay it afterward.

1. Select + New, then choose Bill.
2. From the Supplier ▼ dropdown, select your barter partner.
3. Enter all the necessary information.
4. Select Save.

Finally, record the bill payment by following these steps:

1. Select + New, then choose Pay bills.
2. From the Payment account ▼ dropdown, select your barter bank account.
3. Choose the bill you’ve created earlier.
4. Select Make payment under Balance Due.
5. Enter the amount.
6. Select Save and close.

Additionally, I’m adding this resource where you can access our self-help articles: QuickBooks Online guide. These resources contain topics that will guide you on how to efficiently handle your taxes, payroll, account information, banking tasks, sales or expenses related-activities, and so on.

Feel free to click the Reply button if you have additional questions or concerns. I’ll be around to answer them for you. Have a great day ahead!