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kelsey4
November 2, 2021
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Deposit payment to a vendor - before invoiced

  • November 2, 2021
  • 1 reply
  • 0 views

Hello!

We have a vendor that we are paying a 25% deposit to produce a particular material. We haven't gotten invoiced yet, so we don't have a bill in the system yet. What is the proper way to handle this to record the deposit before we have an invoice / bill?


Thanks,

Kelsey

Best answer by JoesemM

Thanks for getting back to us, @kelsey4.

 

Yes, you can create a new expense transaction to record the payment. Once done, you can follow the suggestion shared by Rustler to apply the bill when it comes in and pay the balance due.

 

Here's how:

 

  1. In the left menu, click the + New button.
  2. Select Expense.
  3. Choose the Payee name and Payment account.
  4. Go to the Category details section.
  5. Under the Category column, select Accounts Payable (A/P).
  6. Enter the description and the amount.
  7. Click Save and close.

 

Then, enter the bill when it arrives and apply the prepayment. See this link for more information: Enter bills and record bill payments in QuickBooks Online.

 

I've also included these references that help you manage your expenses and vendors: 

 

 

Please know we're always available here to help you succeed with QuickBooks. Just post a response, and the Community will be sure to get back to you. Take good care, @kelsey4.

1 reply

Rustler
Rustler
November 2, 2021

Make the payment to the vendor, and use accounts payable as the expense (reason) for the payment.  That will set a vendor credit that you can apply to the bill when it comes in, and pay the balance due.

K
kelsey4Author
November 2, 2021

So to record the payment, I have to create a new expense under that vendor?

JoesemM
JoesemMAnswer
November 2, 2021

Thanks for getting back to us, @kelsey4.

 

Yes, you can create a new expense transaction to record the payment. Once done, you can follow the suggestion shared by Rustler to apply the bill when it comes in and pay the balance due.

 

Here's how:

 

  1. In the left menu, click the + New button.
  2. Select Expense.
  3. Choose the Payee name and Payment account.
  4. Go to the Category details section.
  5. Under the Category column, select Accounts Payable (A/P).
  6. Enter the description and the amount.
  7. Click Save and close.

 

Then, enter the bill when it arrives and apply the prepayment. See this link for more information: Enter bills and record bill payments in QuickBooks Online.

 

I've also included these references that help you manage your expenses and vendors: 

 

 

Please know we're always available here to help you succeed with QuickBooks. Just post a response, and the Community will be sure to get back to you. Take good care, @kelsey4.

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