How do I record a supplier prepayment in QBO properly?

Thank you for doing the preliminary steps of recording a prepayment in an asset account, Amber.

We can then proceed with entering the bill.

Here's how:

1. Click the +New button and choose Bill.
2. Select a vendor from the Vendor ▼ dropdown..
3. From the Terms ▼ dropdown, select the bill's terms.
4. Enter the Bill date, Due date, and Bill no. as recorded on the bill.
5. Enter the bill details in the Category details section. From the Category dropdown, select the asset account you used for the expense transaction.
6. Enter the Amount and tax.
7. Select Save and close.

Then, record the bill payment. Follow the steps below:

1. Go to + New and select Check.
2. From the Payee dropdown, select the vendor you paid.
3. Select Add to add an open bill to the check.
4. From the Bank/Credit account dropdown, select the account you made the check payment from.
5. In the Amount field, enter the check amount.
6. In the Outstanding Transactions section, select the bills the check payment went to. Tip: If it covers multiple bills, select the checkboxes for those bills. You can split the payment and enter an amount for each bill in the Payment column.
7. Select Save and close.

When the bill arrives, apply the prepayment to it. Refer to this article for the detailed steps: Enter and manage bills and bill payments in QuickBooks Online.

If you're looking to read some articles to learn about your financial situation, you can check out the following links on how to run a report:

• Run reports in QuickBooks Online
• Customize reports in QuickBooks Online
• Memorize reports in QuickBooks Online

Don't hesitate to comment below if you need further assistance managing bills and bill payments in QuickBooks Online. I'm always here to help. Have a great day.