• From: Sudan
  • Registered: 03/15/2016
  • Posts: 3

Topic: A Customer providing a service.

Generally, in the business, some customers payment will not be in cash, instead payments will be as a services provided to your company by that particular customer. My Question is how to enter such transactions in FA.

For example, you can have a car rental business. One of your customers actually own car's repair shop. The customer is renting a car from your business, but in exchange they provide repair and spare parts as part of the payment without any actual cash flow involved.

Thanks for help.

  • From: South Africa
  • Registered: 11/24/2009
  • Posts: 275

Re: A Customer providing a service.

Hi

I created a Barter Bank account under the section "Control accounts" in my Balance Sheet, and would do transactions through bank deposit and Bank payments on this Barter Bank account through the Banking and GL Tab..

You would use your normal GL accounts for income (or you can create a different income account) and expenses for example (motor repairs).

At the end of the month

Wynand

seahawk's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: A Customer providing a service.

Alternatively, a credit of maximum usage can be agreed upon and provided as a loan to the customer and advance received back into the customer's account.

A credit limit too can be used.

apmuthu's Website