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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. 

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Best answer 10-19-2018

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Established Community Backer ***

There are a couple of ways to do it, I prefer enter the p...

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

3 Comments
Established Community Backer ***

There are a couple of ways to do it, I prefer enter the p...

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

Frequent Explorer **

Re: [Cash Advance with expense incurred] There are a couple of ways to do it, I prefer enter the p...

 

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?

Established Member

Re: There are a couple of ways to do it, I prefer enter the p...

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....