Prepay vendor for products

A pleasure to have you here today, @dranta. It'll be my pleasure to walk you through the process of recording prepayment for a specific vendor in QuickBooks Online (QBO).

Before we dig deep into this, know that you've come to the right place. Entering a vendor prepayment can be as easy as entering a normal transaction inside your company. I'll gladly input the steps below so you can proceed. To begin, you'll want to create a Check for your vendor. Here's how:

1. Access your QuickBooks Online company.
2. On the left navigational bar, click the +New button and then select Check under Vendor column.
3. In the Category section, choose Accounts Payable (A/P).
4. Enter the vendor's name, date and payment amount.
5. Once done, click the Save and close button.

Once done, proceed to create a bill. these are the steps:

1. Access your QuickBooks Online company.
2. On the left navigational bar, click the +New button, and then choose Bill.
3. Fill in the necessary information.
4. Once done, press the Save & close button.

Now that we've done the initial setup for entering prepayment for your vendor in QBO, we can now proceed to apply the prepayment to the bill you've created. Here's how:

1. Access your company file.
2. Click the +New button, and then choose Pay bills.
3. Locate the bill you want to associate with your prepayment.
4. Enter an amount on the Credit Applied section.
5. Input the amount on the Payment section.
6. Once done, click the Save or Save and close button.

Furthermore, I've got you this article for reference to help you handle bills inside your company: Enter and manage bills and bill payments in QuickBooks Online.

I'd also recommend checking this page about generating reports to ensure your data is accurate: Run reports in QuickBooks Online.

@dranta. Thanks for choosing our program to handle your business needs. We'll be more than happy to help you out again if you need assistance performing specific tasks inside QuickBooks. Stay safe, and more power to your business!