My supplier ask me an advance payment against my future purchases. How to record payment to supplier as advance to supplier ?

Hello there. We can record your advance payment made to your supplier as an expense transaction. I'll guide you on how to accomplish this below.

Let's start with creating an expense transaction and use the Accounts Payable (AP) to record the advance payment. This way, the system will generate a credit that can be applied to your future invoices (bill from supplier). Here's how:

1. Make sure you have the supplier listed in QuickBooks Online (QBO). Skip this step and continue to step 3 if you've already added the supplier to your account. If not, select Expenses, then Suppliers.
2. Create a new Supplier by filling out all the information, then select Save.
3. Go to + New.
4. Select Expense.
5. Create an expense for the supplier by selecting a Payee and Payment account.
6. Under the Category column, select Account: Accounts Payable (A/P), then enter the description and the amount.
7. Select Save and close.

Once your bill is created, we can apply the credit as a payment. Please see the screenshot below for your reference.

Additionally, you can determine the total amount you paid to a supplier for the year by generating a Transaction List by Date report. For a detailed guide on how to do this in QBO, please refer to this article: Run a report with supplier totals.

If you have any other concerns or questions regarding managing supplier and expense transactions in QBO, please feel free to leave a comment below. I'm here to assist you. Take care.