cancel
Showing results for 
Search instead for 
Did you mean: 
Valecreekaccounting
Level 1

Prepaid Accounts

I have created a prepaid account for a client, but the only way to enter an expense against the prepaid account is through a journal entry.  Unfortunately, when you enter a journal entry it is not tracked in the vendor activity.  Is there another way to handle prepaid accounts to keep track of the vendor expenses?

1 Comment 1
MirriamM
Moderator

Prepaid Accounts

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:

  1. In the left menu, click the + New button.
  2. Select Expense.
  3. Choose a Vendor.
  4. Under the Category details section, select Accounts Payable (A/P) for the Category.
  5. Enter the description and the amount.
  6. 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.

Need to get in touch?

Contact us