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Meron GG
Level 2

how to record an advance payment made for a sister company

Hi Team,

I have to record an advance payment made by my company to its sister company. I did a journal entry by crediting the cash amount and by debiting the cash at the bank. However when I enter the NAME of the sister company in the journal entry I realized that the sister company was recorded as a vendor and not a customer, thus I am unable to save the journal entry I made. I don't want to re-enter the company as a customer because there are a lot of expenses already recorded and I am afraid it would make it difficult to trace those expenses later on if I record the same company as a customer and as a vendor.

Is there another way to record this advance payment? 

Thank you for your help.

Meron

2 Comments
JessT
QuickBooks Team

how to record an advance payment made for a sister company

I'm happy to help you record your prepayment, Meron.

 

You can record and expense and use the Accounts Payable account to it. This will record the prepayments as a credit on the vendor's profile, and you can use it to pay their future bills. You won't need to create a journal entry and a customer profile anymore. Please check this article for your reference: How to record the advance payment made to supplier. Proceed to Step 3.

 

When you create a bill in the future, the right-hand sidebar will show you the available credits that you can apply to the bill.

 

Let me know if you still need help recording your prepayment.

Meron GG
Level 2

how to record an advance payment made for a sister company

Thanks a lot for your help JessT.

Appreciate it.

Meron

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