Quicken & Other Budget/Accounting Software/Payment



Company A - is our Debtor & Creditor at the same time.

On 1 Jan 2013, our company has invoiced company A amounting $5000.
On 15 Jan 2013, company A invoiced us amounting $10,000

I would like to do a contra with Company's A invoice payment with our payment to them. So that we only need to pay Company A $5000 from the $10,000

1) How do i do the contra and at the same time to assign both invoice as paid?
2) If i need to do JE or assign to any account please tell me the details. Thanks.

ANSWER: In QuickBooks, we cannot apply an Accounts Receivable directly to an
Accounts payable.

So we set up a new chart of account type =bank account called "Barter"
We can then pay the accounts payable bill $5000 from the Barter account
And then receive payment against the customer account and deposit it into the
Barter account.  When done the barter account must be zero

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor

We sell and support QuickBooks Enteprise

---------- FOLLOW-UP ----------

QUESTION: is the barter account as bank account? under asset?
can u show an example payment made and receive from the barter account? hows the transactions like

ANSWER: Are you using an accounting software package?
Does your software permit you to select the bank account
 where you will be depositing the checks from customers or
  is it a default account?

Does your software permit you to select the bank account
 where you will be writing checks to pay  your vendors or is
 it a default account?

---------- FOLLOW-UP ----------

QUESTION: The answer to both of your question above is YES, and permitted.

Customer is ABC company {customer} invoice is $200
Vendor is ABC Company {vendor}  bill is $125

In your software, pay the bill for $125, be sure to to change
the bank from which the check is written to the Barter bank account

Next open the window that will let you apply customer payments to invoices
Select the customer name ABC Company {customer}
Enter that you received $125.
In this window if you can select which bank account will receive the money
choose the barter bank account
Save & close.

If your software does have a separate window to deposit the $125, open that
window and post to the Barter bank account.

The barter bank account should now have a zero dollar value
And your Customer ABC company will show that they only owe you $75 on that invoice.  

Quicken & Other Budget/Accounting Software

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Linda Saltz, CPA, QBalance.com


QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com


Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
Producer of www.QBalance.com over 100 pages devoted to QuickBooks help and support and training for small business owners in tax and accounting issues.

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