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piperppp
July 31, 2024
Question

How to pay deposit on bill from vendor against a purchase order?

  • July 31, 2024
  • 1 reply
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We have hardware we are buying from a vendor and they are requesting a 50% deposit before they ship the items. However, normally our process is Create purchase order>order items>receive items and record received in Quickbooks>Enter Bill Against Received Items. We can only do that process once we have physically received the items. Since they want to hold the items until we pay a deposit, and we have already created a PO, how do we move forward on paying this in Quickbooks? If I were to enter the bill and select the PO and connect the two despite not being received, I still run into the issue of have to change the line item prices on the PO to match only 50% of the order. And we don't want to change the line item prices on the PO because that tracks for our inventory. What would be the Quickbooks protocol for this?

1 reply

J
JoanaC
August 1, 2024

I have all the information you need about your PO deposit payment to your vendor, @piperppp.

 

We don't need to process anything on your purchase order as the vendor requires a deposit. We can issue a 50% deposit check that will impact the Accounts Payable. Follow these steps to do so:

 

  1. Choose the bank account from which the money will be taken.
  2. For the Pay to the Order, this should be the Payee Name or whoever the check was issued for. When prompted that PO is available for this vendor, click No, then select Write Check. 
  3. Click Expenses, select the appropriate category, and enter the amount.
  4. Check the amount in numbers. Below, the Pay to the Order field will automatically show the Dollar amount in words. 
  5. Select Save & Close.

 

Once the orders are received, we can process the received items, record them in Quickbooks, and then enter a bill against the received items. The check we create will show a supplier's credit that we can use for payment of the bill.

 

Additionally, let me share this article to help you unapply a refund to an invoice: Remove or unapply a credit from an invoice or bill.

 

Keep me posted if you still have questions about your PO and Bills. Have a great day.

P
piperpppAuthor
August 1, 2024

Okay, that looks fine, but I am not understanding the part about entering the bill when it comes and using a supplier's credit to pay it. Can you elaborate on that?

I
I used to have an invoices sho
August 1, 2024

Thank you for your prompt response, Piperppp.

 

If you have received a credit from a vendor (for example, due to an overpayment or a returned item) this should be recorded as a credit in QuickBooks. To do this, choose the Credit option on the Vendors menu. I'd gladly provide detailed steps to guide you through this process.

 

To enter or record a received bill in QuickBooks Enterprise (QBES) using a supplier’s credit, follow these steps below:

 

Enter the Bill:

  1. Open QuickBooks Enterprise and go to the Vendors menu.
  2. Select Enter Bills.
  3. In the Enter Bills window:
    • Vendor: Choose the vendor from whom you received the bill.
    • Date: Enter the date of the bill.
    • Amount: Enter the total amount of the bill.
    • Bill No.: Enter the bill number for reference.
    • Expenses/Items: Allocate the bill amount to the appropriate expense accounts or items.
  4. Click Save & Close to record the bill.

 

Enter the Supplier’s Credit:

  1. Go back to the Vendors menu and select Enter Bills again.
  2. In the Enter Bills window, tick the Credit radio button at the top.
  3. Fill in the details:
    • Vendor: Choose the same vendor.
    • Date: Enter the date of the credit.
    • Amount: Enter the credit amount.
    • Expenses/Items: Allocate the credit amount to the appropriate accounts or items.
  4. Click Save & Close to record the credit.

 

Apply the Credit to the Bill:

  1. Go to the Vendors menu and select Pay Bills.
  2. In the Pay Bills window:
    • Select the Bill: Check the box next to the bill you want to pay.
    • Set Credits: Click on the Set Credits button at the bottom.
  3. In the Apply Credits window:
    • Select the Credit: Check the box next to the credit you want to apply.
    • Click Done.
  4. Verify that the credit has been applied correctly in the Pay Bills window.
  5. Click Pay Selected Bills to complete the process.

 

These steps will ensure that the supplier’s credit is properly applied to the received bill in QBES.

 

Moreover, always review your transactions to ensure everything is recorded correctly, and use QuickBooks reports to verify that the bill and credit have been applied properly.

 

You may also find this article helpful for additional information on customizing the reports based on your business needs in QuickBooks: Customize vendor reports.

 

Please tag my name in your reply on the Community forum for further inquiries about managing vendor bills-related concerns in QuickBooks Enterprise. I'm more than willing to assist you further. Have a pleasant day!

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