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andy4
Level 1

How do I enter an advanced payment to a supplier, and how do I account for the advance when I receive the receipts for the expenses.

I am very very new to QuickBooks so I would appreciate some detail in the response. Thank you for taking the time to respond. 

Solved
Best answer October 19, 2018

Best Answers
Rustler
Level 15

How do I enter an advanced payment to a supplier, and how do I account for the advance when I receive the receipts for the expenses.

There are a couple of ways to do it, I prefer

enter the payment (check or credit card) to the vendor, in the expense section select accounts payable and enter the amount, save

that sets a credit for your deposit with the vendor

enter the bill when it comes in, then in pay bills, apply the credit, and pay the balance if any when you wish

View solution in original post

3 Comments 3
Rustler
Level 15

How do I enter an advanced payment to a supplier, and how do I account for the advance when I receive the receipts for the expenses.

There are a couple of ways to do it, I prefer

enter the payment (check or credit card) to the vendor, in the expense section select accounts payable and enter the amount, save

that sets a credit for your deposit with the vendor

enter the bill when it comes in, then in pay bills, apply the credit, and pay the balance if any when you wish

View solution in original post

rkumar1
Level 1

How do I enter an advanced payment to a supplier, and how do I account for the advance when I receive the receipts for the expenses.

 

Fellow colleague has recorded Cash Advance as income and I want to adjust this. Since the whole project billed was for e.g. $1 million and $0.2 million was cash advance - can $0.2 million be adjusted with the expenses incurred? What will be the adjusting journal entry?

Serhat
Level 2

How do I enter an advanced payment to a supplier, and how do I account for the advance when I receive the receipts for the expenses.

Then how do we record refund of it, if the deal was not happen? 

 

here is the scenario

1. I paid 100 to supplier (recorded cheque expense in qbo for the prepaid expenses category). 

2. supplier decided to refund it and gave the instruction to its bank.

3. I recorded Bank Deposit. I enter two lines (i) +100 received from the supplier, from the prepaid expenses category, -10 received from the supplier, from the bank charges category.)

4. Bank of supplier and intermediate bank deducted 10 and I receive 90 to my account. 

 

Result: 

Bank account appears correct

Supplier account gives negative balance

account payables also affected.... 

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