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david-theorigina
November 12, 2021
Solved

How do I record a bank payment that is a deposit to a supplier?

  • November 12, 2021
  • 2 replies
  • 0 views
QBO
Best answer by Ashleigh1

Hello David-theorigina, 

 

Welcome to the Community page, 

 

You can record this by creating a cheque with that supplier as a payee and the category being accounts payable/creditors. That will then mean that when you create a bill for the supplier you can attach the deposit paid as part payment /full payment of the bill depending on the circumstances. Any questions just ask.

2 replies

A
Ashleigh1Answer
November 12, 2021

Hello David-theorigina, 

 

Welcome to the Community page, 

 

You can record this by creating a cheque with that supplier as a payee and the category being accounts payable/creditors. That will then mean that when you create a bill for the supplier you can attach the deposit paid as part payment /full payment of the bill depending on the circumstances. Any questions just ask.

paul72
paul72
November 16, 2021

Hi @david-theorigina 

 

Two options:

(1)   Create a Cheque for the payment to the supplier.

Enter the cheque number/reference as BACS or CHAPS or whatever (you can leave blank if you want).

Post the amount to your Accounts Payable (Creditors) account & set the VAT to No VAT.

This will create a credit on the supplier account in QBO.

When you receive the bill from the supplier, enter in the usual way.  Then, when you go to Pay Bills, the deposit will be there as a credit to use.

 

(2)  Create a 'dummy' bill from the supplier.  Use Pay Bills to enter the deposit.

When you receive the actual bill, go back to amend as required.

Just be careful if the date of the dummy & actual bills cross a VAT period boundary - you don't want to be reporting VAT on the dummy bill.

 

Hope this helps.

D
david-theoriginaAuthor
November 17, 2021

Paul

First option is perfect.

Thanks

David

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