Hello there, @userhuini.
You're unable to match an online advance payment directly to a Purchase Order (PO). Since the PO is a non-posting transaction in QuickBooks Online (QBO), you can create one then send it to your supplier anytime.
You can record your online advance payment using the Expense feature and post it to the Accounts Payable (A/P) account. Based on your description, it seems that you've already received a bill from your supplier even though you haven't received the goods yet. With this, you can easily create a bill and link the expense to it.
First, create an expense transaction and post it to the A/P account. Here's how:
I've attached a screenshot below that shows the last three steps.
After that, you can pay the bill using the expense transaction (advance payment). You'll have to link the bill and the advance payment by creating an Expense transaction. Refer to the screenshot below for your reference.
Additionally, you can pull up a supplier transaction report. This is to make sure you've recorded all your expenses accordingly. Just select the report you want from the What you owe and Expenses and suppliers sections in the Report menu's Standard tab.
Please don't hesitate to select the Reply button below if you have other supplier concerns in QuickBooks. I'm just around to help. Take care always.
Hello thank you for answering me. However, it seems like you misunderstanding.
My here is do advance payment so bank is out $1,500.00
PO before had created then when delivery come, my colleague will create RECEIVE.
When he did so, it will prompt Make Payment for this supplier.
How am I going to match it since I had make advance payment?
Or should I put under Cash In Transit first?
Sorry I could not screenshot for you to see.
I appreciate the details that you gave, @userhuini.
You can create a vendor credit to record the advance payment that you made. After that, you can link the credit to your supplier's bill once it is made available. Just follow the steps shared by my peer Rea_M above on how to add the PO to the bill.
To create a vendors credit:
Once done, you can apply the existing credit to an open vendor transaction, using the Pay Bill feature.
You can also check out this link attached to give you more tips about managing vendor credits and on how to apply them depending on the scenario that you're in: How do I handle supplier credits and refunds?
I got your back if you have any other questions with this or with QuickBooks. Just let me know in the comment section. Take care!
Hi thanks for your sharing but i still don’t understand why must i key in under bank deposit feature? I tok this is where my customer pay money to me? And if i put deposit will it become the money go into my company bank account? Right now i m paying vendor advance payment thx
Hello there, userhuini. Thanks for getting back to this thread.
The Bank deposit feature can also be used to link the vendor transaction to an available one. I would still suggest following the steps shared by my colleagues by recording the advance payment using vendor credit and link it to your supplier's bill. Another way is to take the steps provided by Rea_M above.
Here are some articles that you can check for additional guide:
Visit again if you have other questions. Take care always!
Hello thanks for answering me again yes i would think the way Rea_M advised is the same as my way. However for this round the create PO not done by my side, then my colleague will come out with RE1514
I attached below for your reference.
So my query is once it is created, I have to go make payment in order to make this PO or RE gone, but I have done the payment in advance. Can I go back to my EXPENSE (ex DBP201010 to match this RE or PO)?
Hope you can understand my situation here because my organization not I am the only one use QB.
Thanks a lot once again.
Thanks for getting back to us, userhuini.
It seems to me that you'rent able to attach the screenshot for my reference so I can further check on the details of your concerns. Also, can you please let me know what you mean by RE1514? Any additional information you can provide will help to ensure a timely solution.
In the meantime, I would recommend checking out these links related to suppliers in QBO for additional reference:
I'm looking forward to helping you out here in the Community.
I had attached under choose file are you able to see it? RE means receive. And I had tried the expense method after RE which is receive had been done, I can go back to that expense to match that particular PO. I will monitor again and see how it works.
Thanks a lot.
I can't see your attachment, userhuini. However, I guess you were able to follow Glinette's instructions. Just let us know if you want to clarify something on her instructions or on the articles she shared.
I'm also sharing this article about recording advanced payment to a vendor for your additional reference: Record supplier prepayments or deposits for prepaid parts or services. Though this is for the UK version, the principles are just the same with the QBO International versions.
If you have other questions in mind, please don't hesitate to reach back out.
I'll try to summarize what is happening on this thread and see if I can relate it your concern, userhuini.
Based on the responses above, your concern is about an advance payment you've made to your supplier. With that said, I can think of two ways to record the advance payment; supplier credit or bank deposit (affecting Accounts Payable A/P).
If you select supplier credit, you can follow the easy steps in this article: Enter a credit from a supplier.
The article also mentioned on how you can apply the credit to the bill.
If you select bank deposit, you can follow the steps under Scenario 1 in this article: How do I handle supplier credits and refunds?
Both methods have the same outcome,which is to record the advance payment and applying it to the bill.
Now, I've noticed that there are purchase orders mentioned as I review the thread again. If the purchase orders where not added when you create the bills, you can still link it through these steps:
With the processes I've mentioned above, you should be able to record the advance payment, apply it to the bill, and attach the purchase orders to the correct bills.
If I misunderstood your situation, we'd be glad to hear more about it in details. Thanks in advance and have a great day!
Maybe I summarize for you.
1) There is an PO raised out (issued by B)
2) We need to do advance payment (done by H)
During that, bank had deducted the amount. So entry at QBO under Expenses - New Transaction - Expense - Payee - Reference no - Category (My question: what should I key? Can I key purchases? Cos it does not allowed me to input Trade payables or Accounts Payables.
If can, will it double the accounting entry at my PO raised out by B?
3) Goods received take out from PO - do RECEIVE - closed (done by C). He input Dr Purchases Cr AP
4) It will prompt - Make Payment for this supplier (which I had done payment at step no 2)
5) My Question: Can I go back to step 2 to do matching? If so, will the make payment prompt gone?
I hope my summary is very clean and nice. Thanks for your help.
Hello there, userhuini. I appreciate the details you've provided to this thread.
You can go back to step 2 and link the advance payment you've created. The system may not allow to save it as payable when the amounts are for exclusive and inclusive of tax. We can change it to Out of scope of GST to make this thing done. Here's how:
The steps 3 and 4 you've shared above may seem to cause a duplicate one. With that, you can match it by going back to step 2. Here's an article that you can check for additional reference: How to apply the advance payment paid after deducting TDS on a Bill?.
Please let me know if you still need assistance with this. I'm always here whenever you need help. Take care always!