How to record the purchase of customer service contract

Hi henvil!

Thanks for posting again here. I'll show you how to record this purchase.

You can record this as a bill since you're the one who purchases the contract from a different provider. Then, simply enter a partial payment to record the paid portion of the contract. 

Please follow these steps:

1. Go to the + New button and select Bill.
2. Select a Vendor and enter the details needed.
3. When you're done, select Save and close.
4. For the payment, go back to the + New button and select Pay bills.
5. Choose a Payment account, and enter a Payment date.
6. From the list of open bills, select the one you entered for the contract.
7. In the Payment field, enter the amount for the partial payment.
8. Tap Save and close.

If you're using QuickBooks Desktop, you can find the detailed steps in these articles: 

• Enter bills in QuickBooks Desktop

• Pay bills in QuickBooks Desktop

Also, I've added a link you can check: Learn the reconcile workflow in QuickBooks. These will show you how to balance your accounts in QuickBooks.

Leave a comment below if you have other concerns. Take care!

Thanks Alex for your quick response, but my main issue is to know which accounts to use to record the transaction.