deposit paid to the vendor

Hello there, @caunicorn.

I'm here to share insights and ensure you can record deposits paid to the vendor in QuickBooks Online (QBO).

From your scenario, it appears that this is a prepayment to the vendor. To record this, let's create a vendor credit. This ensures the credit hits the expense account you use for this vendor.

Here's how:
 

1. Click + New.
2. Select Vendor credit.
   
3. In the Vendor dropdown, select your vendor.
4. Enter the Category or Item details depending on how you record purchases with this vendor. Usually, this is the category, product, or service you’re getting credit for.
5. Choose Save and close.
   

Feel free to browse this article for more information about vendor credits: Manage Vendor Credits.

Additionally, check out this article if you want a breakdown of the many aspects of your company, such as sales and expenses: Run reports in QuickBooks Online.

Keep in touch whenever you have additional questions concerning bills and vendor credits. We're always around to help. Stay safe and have a wonderful day ahead.