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Paying a Bill Without Receiving Inventory

We often have to pre-pay for items before they are received. Sometimes, these items have very long lead-times (weeks to months). We need a mechanism to issue the PO, pay the invoice then receive the inventory into inventory once it is physically received.


After researching this, it looks like this is not easy. There is this post, which is rather old:


There is also reference to turning on "Enhanced Inventory Receiving" but I am hesitating to do that because it cannot be undone, our file is large, we have 20 users and I don't want to change the way we do all of the POs receiving for the 5% fringe cases of having to prepay without receiving.


Ideas and suggestions welcomed. Thanks!


[ Using QB 2019 Enterprise, Manufacturing & Wholesale ]

1 Comment

Re: Paying a Bill Without Receiving Inventory

I can provide some information on how to record vendor prepayments, JoeE.


In recording this scenario, you have two options for entering the prepayments or deposits.


First, you can use Accounts Payable to record prepayment by writing a check to your vendor which decreases the balance until you're ready to enter the final bill.


The other option, is to use an Asset account to track the prepayment by writing a check to the vendor which increases the balance until you are ready to pay the final bill.


To give you a detailed information about this process, you can read this article: Record vendor prepayments or deposits for prepaid parts or services.


For additional help in the future, I'm attaching some helpful articles below:

Please keep me posted on how things go, I'm always here to ensure you'd able to record prepayment transaction.