Bill Payment

Thanks for reaching out to the Community forum, Jenna56. I'm here to lend a hand.

To record the payment for July, you can use the Bill Payment feature as the Bill is for the same month and make sure the date is correct. As for the allocation of the credit in August, you can record a prepayment for the partial payment.

To do this, you can write a check going to the Accounts Payable (A/P) account for the amount. Then, apply the prepayment to the bill. This is how QuickBooks Online (QBO) process when there's a need in recording an advanced payment from the vendor before the bill. But before doing so, I suggest consulting your accountant to ensure the reporting of your books is accurate.

In case you'd want to run a report for your vendor payments, see this article for a guide: Common custom reports in QuickBooks Online. You can also customize your report based on your business needs, take a look at this link for more information: Customize reports in QuickBooks Online.

Keep in touch if you need any more assistance with this, or there's something else I can do for you. I've got your back. Have a great day.

@Jenna56 

Another option, prepare the Bill Payment data with the following template

then utilize an importer tool

https://transactionpro.grsm.io/qbo

So thank you for responding and I know how to make a bill payment but this does not help me at all. I don't think that I was clear. The auto payment was set up in June and that is when the June, July and a portion of the August payment was made. So my issue is my client wants the July and August bill entered and to show up in QuickBooks but I am not sure how to show that they have been paid or a partial payment made. I can't do a bill payment with the bank account because it happened in June and I am not recording transactions in June. I think I need to make a journal entry but if so I am not sure which accounts to use.