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accounts61
Level 1

Is there is way in QB online to post supplier payment on account? That is paying supplier ahead of invoice.

 
4 REPLIES 4
GarlynGay
Moderator

Is there is way in QB online to post supplier payment on account? That is paying supplier ahead of invoice.

Hi accounts,

You can enter the advance payment for a supplier as Supplier Credit. When a bill comes in, the credit offsets the due amount. 

Here's how to create a Supplier Credit:

  1. Click on the Plus icon.
  2. Select Supplier Credit.
  3. Select the supplier, and choose the category, enter the description and amount.
  4. Click on Save and close

To apply the credit to an open bill:

  1. Click on the Plus icon.
  2. Select Pay Bills.
  3. Select the bill.
  4. In the Credit Applied column, the credit is automatically fill in the amount.
  5. Click on Save and close.

We'll be right here to help you all the way. Please post more questions about QuickBooks. 

Brewerer
Level 1

Is there is way in QB online to post supplier payment on account? That is paying supplier ahead of invoice.

Similar to the above question, but instead of a credit applied to the account by the supplier, what is the correct way to account for Direct Debit payments made to a supplier's account, prior to receiving a VAT invoice from the supplier for the services. We are just finalising our VAT return, and will not have another invoice that falls into the period.

 

We have the payments going out of the bank, but nothing to be able to apply them to our energy suppliers account in QBO.


Thanks in advance.

MikiD
QuickBooks Team

Is there is way in QB online to post supplier payment on account? That is paying supplier ahead of invoice.

If your accounting basis is cash, you might want to record the advance payment through journal entry, accounts146.


This will be a great alternative for recording the transaction instead of creating supplier credit.  


Please check this out for steps to create a journal entry: QuickBooks Online. 


If your accounting basis is accrual, then you might want to record the bill first. It’s because the method records expenses when they’re incurred. 
Lastly, I’d recommend consulting an accountant when doing so. This is to make sure everything is recorded correctly. 


Our doors are always open if you need anything else. 
 

Autocrat
Level 1

Is there is way in QB online to post supplier payment on account? That is paying supplier ahead of invoice.

"If your accounting basis is accrual, then you might want to record the bill first. It’s because the method records expenses when they’re incurred. "

This answer is nonsense.

I might pay a supplier say £500 because that is all I have available in my bank to pay the supplier's bill or account balance of for say £743.86.

So how do I post my £500?

Create a credit note for the difference? Nonsense!

I am going to have to change to say Sage - which can accept such payments on account.

I have helped install mega-systems like SAP and Oracle, so I know what I am talking about!