Need help with QuickBooks

[EgyptianGiftStore.com]

Hi,

I managed to get past the basic stuff in QB, this one is too tricky for
me and I would appreciate any help I can get.

I have a two-way relation with one of my suppliers, he bills me for
items and products and I invoice him for some services I do for them.
So, for example, one month I would order $500 worth of products from
them and will also bill them for $100 of services. At the end of the
month I want to QB to report that we owe this supplier $400 only
(500-100).
Because my supplier is in Egypt we don't want to pay bills separately,
if we consolidate all bills and subtract all invoices for the month we
endup making one international transfer and save on the associated bank
fees.

Any help or ideas are greatly appreciated.

Thanks.
--
Mohamed
www.egyptiangiftstore.com

[Lisa C]

"EgyptianGiftStore.com" <mansour1491@gmail.com> wrote in message
news:1127952492.480855.130970@g43g2000cwa.googlegroups.com... Hi, I managed to get past the basic stuff in QB, this one is too tricky for me and I would appreciate any help I can get. I have a two-way relation with one of my suppliers, he bills me for items and products and I invoice him for some services I do for them. So, for example, one month I would order $500 worth of products from them and will also bill them for $100 of services. At the end of the month I want to QB to report that we owe this supplier $400 only (500-100). Because my supplier is in Egypt we don't want to pay bills separately, if we consolidate all bills and subtract all invoices for the month we endup making one international transfer and save on the associated bank fees. Any help or ideas are greatly appreciated.
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:
**Credit the customer for the work you invoiced (you are going to subract
the amount from the bill you received).
-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.

**Offset the bill from the vendor to reflect the work you did.
-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.

-----------------------------------------------------

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.

[Peter Saxton]

On 28 Sep 2005 17:08:12 -0700, "EgyptianGiftStore.com"
<mansour1491@gmail.com> wrote:
Hi,I managed to get past the basic stuff in QB, this one is too tricky forme and I would appreciate any help I can get.I have a two-way relation with one of my suppliers, he bills me foritems and products and I invoice him for some services I do for them.So, for example, one month I would order $500 worth of products fromthem and will also bill them for $100 of services. At the end of themonth I want to QB to report that we owe this supplier $400 only(500-100).Because my supplier is in Egypt we don't want to pay bills separately,if we consolidate all bills and subtract all invoices for the month weendup making one international transfer and save on the associated bankfees.Any help or ideas are greatly appreciated.Thanks.

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

--
Peter Saxton from London
peter@petersaxton.co.uk