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JacoLiao
Level 1

How you put cost of good sold and sales income in the same month if you prepay to vendors?

I prepaid to vendors two month before I receive my customer's payments.

How to do accounting correctly when I prepaid to vendors? Now I use "BILL" as account payable & "BILL  PAYMENT" (when I remit to vendors). I also use "INVOICE" as an account receivable and send to customers for them to pay in certain date (two month after I pay to vendors).

 

However, here is the issues I have:

1. Some transaction go to "PURCHASE" category in the "Profit & Loss Sheet"

2. The Cost of Good Sold & sales income is in different month so I can't track the profit for each estimate vs purchase order.

3. Is there an accounting category that I can use for prepaying vendors so I can balance it after I receive money from Customers.

4. IF above point 3 can happen, how can I track the money I owe vendors or the money that customers need to pay me.

 

Cheers,

 

Jaco

1 Comment 1
JamesM
QuickBooks Team

How you put cost of good sold and sales income in the same month if you prepay to vendors?

Hi there,

 

Making sure you're recording your transactions the right way is a good exercise for preventing errors in your books. 

 

I recommend contacting an accounting professional to get more info on this. If you're not in contact with one, I encourage you to search for one on our website using this link here. Doing this will help prevent any future discrepancies. Let me know if you have other questions. I'm here to help.

 

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