We pay advance to vendor and we receive bill after 1 or 2 months. Then we need to set off advance to vendor with AP balance. but not to show AP as negative for advance

Welcome to the Community forum, Guptaa.

Let me share some information to help you identify the cause of the negative AP balance when managing vendor advances in QuickBooks Online.

Accounts Payable shows a negative balance for an advance payment to a vendor when the payment is recorded before the corresponding bill is entered. This occurs because the advance payment is recognized as a credit in the Accounts Payable ledger, indicating that you have paid the vendor more than what is currently owed. This credit reduces the payable balance, and if it exceeds the total outstanding bills, it results in a negative balance, reflecting that your liabilities to the vendor are temporarily less than the payments made.

In addition, you can check this article to help you understand how to correct Accounts Receivable (A/R) or Accounts Payable (A/P) balances on a cash basis balance sheet: Resolve accounts receivable or accounts payable balances on a cash basis balance sheet in QuickBooks Online.

I've also added a comprehensive guide on handling bill payments, which could be useful in the future: Enter bills & record bill payments.

You can always tap me if you have additional questions about handling your vendor's bill or any QuickBooks-related matters, Guptaa. Take the best care always and have a wonderful weekend ahead!