AP converting to a long term note

Hi Drisc8. The best way to do this would be to set up a loan in QuickBooks Online. Check out this article for a comprehensive guide on how to record loans. The article will guide you through the proper way of keeping track of your long-term liabilities.

To remove the amounts from you A/p you will simply delete the transactions. If you're not sure whether you should delete or void the transactions, the article on voiding and deleting transactions will be a huge help to you.

If you have any other questions feel free to leave a reply below and I'll be happy to get back with you. Have a great day.. 

@Drisc8 

NO, do not delete the transactions as @Steve_C  says, doing that will remove the inventory from stock, and if you sold any will drive your inventory asset account negative

create the long term liability account
bring up the vendor bill, enter the liability account in the expense section and enter the bill total amount as a negative number. The bill should now show a zero balance, if so save and pay down the liability in the future

@Rustler, I was going to suggest journaling the relevant amount out from A/P to the LT liability account, and then "paying" the bill with that transaction thereby marking it as paid. Arithmetically I think that achieves the same effect as your method, but yours seems cleaner[1]

Would you also use your method where the bill did not have inventory items -- a purchased service for example? Obviously your comment about driving the inventory asset account negative then would not apply, but I don't see why that would matter. I definitely don't like the deletion approach that @Steve_C  suggested!

Thomas

[1] Not least because it avoids using the journal which QB Online (unlike ye olde QB Desktop) seems very confused about, in terms of how to display journal entries within a Supplier's transaction list.

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@thomas4 wrote:

@Rustler, I was going to suggest journaling the relevant amount out from A/P to the LT liability account, and then "paying" the bill with that transaction thereby marking it as paid. Arithmetically I think that achieves the same effect as your method, but yours seems cleaner[1]

 

Would you also use your method where the bill did not have inventory items -- a purchased service for example? Obviously your comment about driving the inventory asset account negative then would not apply, but I don't see why that would matter. I definitely don't like the deletion approach that @Steve_C  suggested!

 

Thomas

 

[1] Not least because it avoids using the journal which QB Online (unlike ye olde QB Desktop) seems very confused about, in terms of how to display journal entries within a Supplier's transaction list.

 

 

 

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Yes, that method will work for any transaction, regardless of it being inventory or just an expense.

Hello.  That is exactly what I was thinking to do as well, however, when i make the journal entry, it does show the actual bill as being paid in the a/p journal, but the vendor itself, it still shows that individual invoice in the open balance for that vendor.  How would I get the bill to no longer have an open balance?

Did you ever figure out how to get the Vendor balance to be $0?

We appreciate you joining the thread, @G2Planet.

If you're using QuickBooks Online (QBO) and have vendors with open balances before the date you opened your account, it's best to leave the opening balance blank and add your vendor's unpaid bills to the program. 

You can also edit the vendor bill and make changes to it to zero out the vendor balance. Here's how you can get through this:

1. Access your QuickBooks Online company.
2. Go to Expenses, then select Vendors.
3. Select the vendor.
4. Select the Opening balance bill.
5. Change the expense account in the Category Detail line of the bill or add a new line if needed.
6. Select Save and close.

For more details, please see this page: Manage outstanding balances for customers and vendors in QuickBooks Online.

If you're unsure of what account to use, we recommend contacting your accountant so they can help manage your vendor balance.

Additionally, here's an article to help you keep track of your transactions inside the program and manage your vendors:

• Add a vendor in QuickBooks Online.
• Run reports in QuickBooks Online.

The Community Team is always ready if you have any additional QuickBooks-related concerns or need help handling vendors inside the program. Keep safe.