CenterPoint® Fund Accounting - Exchange Goods/Services for Payment

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Exchange Goods or Services for Payment Video - Duration: 6 min 47 sec

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Occasionally you may provide goods and/or services to a vendor in exchange for items that you have purchased from them. When this type of situation transpires, three transactions are required. One that records the items that were purchased, a second for the items that were sold, and a third that clears the two amounts so those invoices are not awaiting payment.

Step 1: Enter A/P Invoice for Purchases

Step 2: Enter A/R Invoices for Sales

Step 3: One-Time Setup

Step A: Create an Exchange Account

Step B: Setup a Payment Type

Step 4: Mark the A/P Invoice as Paid in Exchange for the Goods/Services

Step 5: Mark the A/R Invoices as Paid in Exchange for Goods/Services Received


Step 1: Enter A/P Invoice for Purchases

When items are purchased from the vendor, an invoice would be entered the same as any other purchase. Please refer to the Enter a Vendor Invoice topic for step-by-step instructions for entering A/P Invoices into the system.

Step 2: Enter A/R Invoices for Sales

When items are sold to this same company/fund, a customer invoice should be entered for the goods/services. This is entered as an unpaid invoice. Please refer to the Enter Unpaid Sales Invoice topic for step-by-step instructions for entering an A/R Customer Invoice.

Step 3: One-Time Setup

Step A: Create an Exchange Account

This account will not carry a balance and is used to simply clear amounts for invoices that were paid for by exchanging goods/services instead of cash.

  1. Select Setup > Accounts > Accounts. Click New.

  1. Specify an appropriate number for this new Account. This is optional if you do not use account numbers.
  2. Specify "Exchange Account" or something similar in the Name field.
  3. Select Assets in the Type field, and Cash in the Category field. Click Save.

Step B - Setup a Payment Type

  1. Select Setup > General > Payment Types. Click New.

  1. Enter "Exchange" or something similar in the Name field.
  2. In the Type of Payment field, select Other as you will not be receiving cash or check payments for these A/R invoices.
  3. Specify your Exchange Account (setup in Step A) in the Account field.

Step 4: Mark the A/P Invoice as Paid in Exchange for the Goods/Services

In the example shown in Step 4 and 5, an electrician was hired to do $500 worth of wiring and the electrician purchased $450 in services from the Alpine Sports company. Both the A/R and A/P invoices have already been entered to record that purchase and sale. Below we'll mark the A/P invoice paid in exchange for what was sold.

  1. Select Processes > Purchases > Payments.

  1. Select the Exchange Account in the Bank Account field.
  2. Specify the appropriate Vendor in the Pay to the Order Of field.
  3. Select the Apply to Open Invoices button.

  1. In the Payment Amount field, specify the amount that is being "paid" by the exchange.
  2. Either click Apply (to have the system automatically select the invoices to be paid) or use the Pay boxes to select the invoices manually.
  3. Click OK to return to the main Payments screen.
  1. Select Save.

Step 5: Mark the A/R Invoices as Paid in Exchange for Goods/Services Received

  1. Select Processes > Sales > Receipts.

  1. Select the customer in the Received From field.
  2. In the Payment Type field, select the Exchange Type.
  3. Select the Apply to Open Invoices button.

  1. Specify the amount that is being exchanged for payment in the Receipt Amount field.
  1. Either click Apply (to have the system automatically select the invoices to be paid) or use the Pay boxes to select the invoices manually.
  2. Click OK to return to the main Receipts screen.
Note: If you want to attach a document to this transaction, see the Attach Documents to Transactions topic for detailed information.
  1. Select Save.

Document: 3168

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