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"EDITED ONLINER DIALOGS"

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TOPIC:  Barter or Non-Cash Trade Outs                                                                                                             DATE: January 13, 2000

TOPICAL OVERVIEW: This Organization exchanges services/resources for certain operating expenses.  This dialog provides some thinking about how such matters should be handled within QuickBooks (TM) (QB) .                 FILE: 2010-07

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TO Forum:

    At our non profit radio station, we have several accounts were we deal with entities on both a cash and trade basis. In setting up QB Pro, does it make sense to use the class designation for those two types of accounts?

TO ONLINER:

    As to QB Classes and Barter or Non-Cash exchange accounting  --- let's see if this reaction to your questions makes sense. Suppose the following:

> Your QB Chart of Accounts says:
    QB Income    310 Radio Billing - Type one
    QB Income    311 Radio Billing - Type Two
    QB Income    388 Radio Billing - InKind exchange
            (or something like this)
    QB Expense    579 Janitorial Services

> You arrange to provide $400.00 worth of Type one radio time for the ABC Janitorial Company, and you exchange $100.00 worth of monthly radio time for like amount of monthly services provided by ABC Janitorial Company..

        Preferred method.....

> Like any other QB ACCT REC process, you would provide the service and invoice ABC $500.00 and credit income account 310 for $400.00 and 388 for $100.00.

> Via QB Jrnl Entry, you would debit acct 579 and credit QB ACCT REC, as to the customer ABC, for said $100.00.

> This provides you with a QB ACCT REC history of the entire $500.00 activity with ABC, etc.

        Alternative method .....

> Invoice for the $400.00 only and by-pass the QB ACCT REC process for the $100.00 Exchange and, via a QB Jrnl Entry, you debit 579 and credit 388 for said $100.00

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  Comment ------ Other than for unique fund accounting purposes explained elsewhere on the web Site, QB classes usually are used to provide further Income and Expense classifications (like Departments or other like groups) and do NOT involve ACCT REC classifications per se. You might get some help by linking up to the following URL and access other links like 0728-07 on this topic:

    http://www.bcidot.org/qbb/0699-07.html

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          As most of you know, we here at  www.bcidot.org  dialog by email with Onliners regarding Ministry Finance (MinFin) matters.  Above are what we call "Edited Onliner Dialogs", or edited version of actual dialogs with some of you, but we have honored your privacy and not used your name or that of your Ministry. Our purpose is to make topical MinFin information available to any interested Ministry Finance Team so you can learn from one another.. Let us know if you would like to dialog on a Peer to Peer basis with the other Onliner involved and we will try to put you together.   Thanx - Jim Bramer  - Proverbs  9:10

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