How to account an advance payment to a vendor in Quickbooks online?

Good day to you, danushka.

I'm here to make sure you can seamlessly record an advance payment to a vendor in QuickBooks Online (QBO).

You'll want to record the payment as an expense and use accounts payable to set up a credit for your vendor. Follow these steps to proceed:

1. First, make sure you already have the supplier listed in QBO.
2. Then, click + New and then choose Expense.
3. Create an expense for your vendor by selecting a Payee and Payment account.
4. Under the Category column, select Account: Accounts Payable (A/P), then enter the description and the amount.
5. Once done, select Save and close.
   
   

After that, enter the bill when it comes in, then use Pay Bills and apply the credit to pay the balance.

I'm also adding this resource to guide you in managing your vendors and business expenses using QBO: Suppliers and Expenses in QuickBooks Online.

Keep me posted if you need further assistance with recording advance payments to a vendor in QBO. I'm always here to ensure your success. Have a great day ahead!