how to record a non monetary transactions against open invoice

To record the exchange of volunteers’ time as payment for their outstanding invoice, you can create a barter transaction in QuickBooks Online (QBO), @info2261.

To begin, you can start by creating a dedicated barter bank account to record both the payment received for the invoice and the bill you’ll create for the barter transaction. Next, add the customer with the open invoice as a vendor in QBO to enable bill creation.

Here’s how to set up the barter account:

1. Click the Gear icon and choose Chart of Accounts.
2. Tick the New account.
3. From the Account Type dropdown, select Bank.
4. In the Detail Type dropdown, pick Cash on hand.
5. Fill in the Account name, then click Save.

Once the setup is complete, you can now receive the payment for the open invoice using the barter account to close it.

Afterwards, create a bill for the customer (now set up as a vendor) to record their time rendered, and pay it using the barter account. For detailed instructions, refer to the Step 3 section of this article: Record a barter transaction.

Please reach out if you have more questions. The Community forum is always here to help.