I can help you with recording your vendor prepayments, @Wendi.
You can record vendor prepayments by writing a check to your Accounts Payable (A/P) account.
Follow the steps below:
- Go to the + New icon, then select Check.
- Under Payee, select the vendor's profile.
- For Bank Account, choose the bank account where you paid the prepayment from.
- Under Category, select the Accounts Payable account.
- Enter the prepayment amount under Amount.
- Provide all the necessary information.
- Click Save and close.
You can now create the bill to decrease the bill amount.
- Go to the + New icon and select Bill.
- Add the vendor's profile under Vendor.
- Enter the details of the purchase.
- Once done, click Save and close.
You can now apply the prepayment check on the bill to pay it. Here's how:
- Open the bill you created.
- Select the Mark as paid checkbox and under Outstanding Transactions, look for the bill.
- Under Credits, select the prepayment check.
- Add any more information, such as a memo or a description.
- Click Save and close.
You can refer to the following article for more information about creating a bill and record bill payments: Enter bills and record bill payments in QuickBooks Online.
If these transactions are downloaded from your bank accounts, check the following article on how to categorize and match online bank transactions in QuickBooks Online.
I'm always here if you need more help in recording your bill payment. Let me know by leaving a reply below. Keep safe!
