Receive product for payment against a receivable invoice

[FIRE QUAKERS]

Is there a way to do this? I have a customer who is also a vendor and has proposed that instead of sending in a check for the receivable invoice they owe us, they will send product in the same amount.

Is it possible to receive the product into inventory and cancel the payable invoice against the receivable invoice?

If anyone can shed some light on this, I would appreciate. :)

[rick Prindivill]

You are describing the basics of a bartering system. Do not get started with this idea. Keep your business dealings and your accounting clear. Use Dollars as the common currency to record your transactions back and forth.

[FIRE QUAKERS]

Thank you Rick. That is actually what I am most comfortable with and have asked our vendor/customer to adhere to this. It is important to have record of all transactions and recording cash in and out is the only way to truly keep track. Again, thank you for your input.