Hi I have at least 5 different vendors in china.i buy from them different category products.i can't pay each vendor directly since the amount of each supplier is small.so I transfer whole money into 1 supplier.then I ask him to transfer money to other suppliers when he cut his bill amount.for example I transfered 10000$ to a vendor A.vendor A has bill amount of 4000$, vendor B 3000$ Vendor c 3000$.when vendor A cut his bill amount (100000-4000=6000) he will have balance of 6000$ for me .then I ask vendor A to transfer my remaining balance to other vendors, B and c 3000$ each one .then vendor B informed me some goods are out of stock so he cut 1000 from 3000$. only 2000$ bill amount is available he asks me if I send him account to return money or he will have that balance for me so that I buy with him next order.then I told him to transfer the 1000 remaining balance to vender D. So my problem is how do I track each vendor balance and how do I transfer money between 5 vendors.because some vendors will have my money for months I want the best way manage that money in Chinese vendors.i hope you understand clearly what I want.
Hello there, @Anonymous. It's great to see you in the Community. I can share more details about the method you can use to record your payments to your vendors correctly in QuickBooks Desktop (QBDT).
First, you can set up a clearing account. This is used when you can't move the money directly to each of the vendors or customers. I suggest using a bank account type when creating it so you can track it easily.
Go to the Lists menu and select Chart of Accounts.
Click the Account button and New.
Choose Bank and select Continue.
Enter the distinguished name for the clearing account.
Select Save and Close.
Once you're done creating a clearing account. Create a journal entry to move the funds from your bank to this account. Then, make an individual entry to transfer the payments to each vendor. That said, I recommend speaking with an accounting professional when creating a journal entry to avoid getting issues in the future.
To know more about the process, you can check out these articles:
Thanks for your reply.i have been using that method you suggested for years.if this method is the best method I would continue to use but if there is more sophisticated and updated method I will move to that method.i will wait other members suggestion also.once again thanks for your help.