How to set up bartering or in-kind services (customers and vendors trading goods or services)

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To clear entries posted for customers that are also defined as vendors, create an asset-clearing account to be used by both modules. This can be used for customers who barter their services or goods with a vendor.

Create a new G/L account. Select GL, Accounts, Maintain Chart of Accounts
Click New. For example, account number 1299.00 "Clearing Account" with 'Account class' selected as Posting.
In A/R, define a new Sales Account for account #1299.00; use description "Clearing Account". Select AR, Utilities, Sales Accounts, Maintain. Use the binoculars to select the next undefined sales account, and define it.
Post an A/R credit memo by selecting AR, Transactions, Credit Memo. Apply it to the original invoice; use the Distribution button to distribute the amount to the sales account defined in step 2.
Post an A/P credit memo for the same amount as the A/R credit memo. Select AP, Invoices, Credit Memo and apply it to the original invoice; distribute to the new clearing G/L account number.

Example entry:

Date Date	JNL	Ref No Description/Accounts	Debits	Credits
6/21/23	A/R	Sam's Hrdwr Credit Memo, #33
		1299.00 Contra Clearing Account	150.00
		1210.00 Accounts Receivable		150.00
6/21/23	A/P	Sam's Hrdwr Credit Memo, #125
		3010.00 Accounts Payable	150.00
		1299.00 Contra Clearing Account		150.00

IMPORTANT: If it is important to update the vendor 1099 field, set up the 1299.00 Contra Clearing Account as a Cash Account in Cash Management (CM). Create a credit memo as stated above in Accounts Receivable. Rather than create a credit memo in Accounts Payable, use 'Enter Handchecks' to close the invoice, make sure the cash account selected for the check is 1299.00, the Contra Clearing Account. By using a handcheck instead of a credit memo, the transaction updates the vendor 1099 field correctly.

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