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Payments
Hello there, @DTetzlaff.
I appreciate you for taking your time in getting back to us. I'd like to furnish you with additional information on how to link the check you've entered to a Bill.
There are two options on how you can record vendor prepayments or deposits for prepaid parts or services:
- Use Accounts Payable to record prepayment
- Use an Asset account to track the prepayment
Here's how to record and link your transactions:
- Create an Other Current Asset (OCA) account to track prepayments.
- Go to the Lists menu.
- Select Chart of Accounts.
- In the Chart of Accounts, right-click anywhere, then select New.
- From the Other Account Type drop-down, choose Other Current Asset.
- Click Continue.
- Enter Prepaid Inventory as the Account Name.
- Hit Save & Close.
- Write a check to your Vendor.
- Click the Banking menu.
- Select Write Checks
- Enter the vendor name, date, and the payment amount.
- Go to the Expenses tab.
- In the Account column, select the OCA account.
- Select Save & Close.
- Enter the bill when the items arrive.
- Select the Vendors menu.
- Choose Enter Bills.
- Go to the Expenses tab.
- Choose the OCA account.
- Enter the amount of the prepayment as a negative value.
- On the Items tab, enter the items.
- Click Save & Close.
- Pay the bill balance.
- Go to the Vendors menu.
- Select Pay Bills.
- Choose the balance due after the prepayment is applied.
- Click Pay Selected Bills.
That should do it! This will allow you to accurately record your vendor prepayments and link it with a bill.
Stay in touch with us here in the Community if you have other questions about managing vendor prepayments in QuickBooks Desktop. I'm always here to help.