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Frequent Contributor *

Supplier payment in advance

Hi,

My supplier automatically takes a specific amount from my credit card every month around13th and sends a bill and statement on the month end. Usually the amount taken will be more than the bill amount. How do i record this in quickbooks.

 

Eg: Jan 13 - Amount debited 500 for previous bill and remaining unapplied payment 100

       Jan 30 - Bill Amount 400

       Feb 13 - Amount debited 450 for Jan Bill

How do i apply the amount 100 in the unapplied payment from Jan 13 payment and make payment for Jan Bill 400 and show the balance unapplied amount 150.

 

Please help. Totally confused. 

 

 

Solved
Best answer 12-12-2018

Accepted Solutions
Established Community Backer ***

Re: Supplier as Inhouse Charge account

Make another Credit Card Type of account and name it for the Vendor. Example: NAPA Auto Parts lets you carry inhouse Credit Line. This is Cardless Inhouse Charge Account tracking, in other words.

 

They take from your CC = Credit Card Charge, and post as the "expense" the Vendor Credit account. Or, that is a Transfer, from VISA to Vendor Cardless CC account.

 

Then, the Vendor 'uses" your account with them, so enter what you owe them as Credit Card Charges. Not what they Take from you, but what you owe them for Purchases made. There is no Bill; they are already handling this as inhouse charge account.

 

"Eg: Jan 13 - Amount debited 500 for previous bill"

Transfer $500 from VISA to "pay vendor charge account."

 

"and remaining unapplied payment 100"

 

That is the running balance you will see in your "inhouse" account.

 

"Jan 30 - Bill Amount 400"

 

Enter Purchase details as Credit Card Charge against the Vendor Inhouse Charge account. Now you show what you bought from them, and owe them for and owe them more.

 

"Feb 13 - Amount debited 450 for Jan Bill"

 

Transfer from VISA to Vendor Inhouse Charge account.

 

"How do i apply the amount 100 in the unapplied payment from Jan 13 payment and make payment for Jan Bill 400 and show the balance unapplied amount 150."

 

By simply tracking all of it using a Vendor Inhouse Credit Card type of account for the activities.

 

View solution in original post

4 Comments
Established Community Backer ***

Re: Supplier as Inhouse Charge account

Make another Credit Card Type of account and name it for the Vendor. Example: NAPA Auto Parts lets you carry inhouse Credit Line. This is Cardless Inhouse Charge Account tracking, in other words.

 

They take from your CC = Credit Card Charge, and post as the "expense" the Vendor Credit account. Or, that is a Transfer, from VISA to Vendor Cardless CC account.

 

Then, the Vendor 'uses" your account with them, so enter what you owe them as Credit Card Charges. Not what they Take from you, but what you owe them for Purchases made. There is no Bill; they are already handling this as inhouse charge account.

 

"Eg: Jan 13 - Amount debited 500 for previous bill"

Transfer $500 from VISA to "pay vendor charge account."

 

"and remaining unapplied payment 100"

 

That is the running balance you will see in your "inhouse" account.

 

"Jan 30 - Bill Amount 400"

 

Enter Purchase details as Credit Card Charge against the Vendor Inhouse Charge account. Now you show what you bought from them, and owe them for and owe them more.

 

"Feb 13 - Amount debited 450 for Jan Bill"

 

Transfer from VISA to Vendor Inhouse Charge account.

 

"How do i apply the amount 100 in the unapplied payment from Jan 13 payment and make payment for Jan Bill 400 and show the balance unapplied amount 150."

 

By simply tracking all of it using a Vendor Inhouse Credit Card type of account for the activities.

 

View solution in original post

Frequent Contributor *

Re: Supplier as Inhouse Charge account

Thanks a lot for the solution. My only other doubt is should inhouse account type be bank / credit card. And what effects will it have if it is bank / CC

Established Community Backer ***

Re: Supplier as Inhouse Charge account

You have Assets (what you own), Liability (what you owe). If you Owe, such as Credit Card, that is Credit Card Debt. If you expect that they always have More of your money than what you owe, this would show a negative balance. Example: You owe $500 and they take $600 from the real Card = negative $100 on hand with them.

 

Bank is an asset; that's why an Escrow account is a Bank Type account to manage the money flow activities. If you set it up as Bank, and you know you always owe, it will show negative. But, using the example above, it would leave it positive $100.

 

What you want to understand is that they are acting as a financial institution to you. You can either track all of this as vendor Prepayments, to start with, and the allocating to Bill Balances. Or, use a process that gives you easy entry tools that allow you to manage this easily.

Frequent Contributor *

Re: Supplier as Inhouse Charge account

Understood... Thank You

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