Hello there, @Valecreekaccounting.
Let me share information with you in recording a prepayment made by a vendor in QuickBooks Online |(QBO).
You can use the Expense feature to record this and use the Accounts Payable account to record the prepayment. Here's how:
- In the left menu, click the + New button.
- Select Expense.
- Choose a Vendor.
- Under the Category details section, select Accounts Payable (A/P) for the Category.
- Enter the description and the amount.
- Choose Save and close.
After that, enter the bill, then apply the prepayment to a bill.
If you need some assistance with managing your account, you can visit our Community Help Articles hub.
If you need further assistance with this, or there's something else I can do for you, let me know by commenting below. I've got your back. Have a great day.