Deposit payment to a vendor - before invoiced

Make the payment to the vendor, and use accounts payable as the expense (reason) for the payment.  That will set a vendor credit that you can apply to the bill when it comes in, and pay the balance due.

So to record the payment, I have to create a new expense under that vendor?

in the left menu?? left menu of what

Hi there, @imchas2512. Let me walk you through the steps and give you additional references.

When recording vendor payment as an expense, the left menu that my colleague is referring to is the left navigation panel. Here are the detailed steps on how you can do it:

1. Click on the +New button from the left navigation panel.

2. Select Expense under Vendors.

3. Select the right Payee and Payment account from the drop-down.

4. Under Category, choose Accounts Payable.

5. Fill in the description field.

6. Enter the payment amount. 

7. Once done, click on Save and close.

Here are guides you can browse to learn more about how to manage bills and expenses in QBO:

• Enter bills and record bill payments in QuickBooks Online.
• Enter and manage expenses in QuickBooks Online

Leave a reply to this thread if you have other queries or clarifications handling bills. I'm ready to assist further. Keep safe and have a nice day ahead!

 am sorry, is this example for QuickBooks online? I have the desktop version and as I originally stated the "Click on the +New button from the left navigation panel" is foreign to me

Yes, the steps shared in this thread are for QuickBooks Online. I'll give you the ones for QuickBooks Desktop, imchas2512.

Here's how:

1. Go to the Vendors menu in the top-most part and select Vendor Center.
2. Look for the name of the vendor or supplier. Then, right-click on it and select Write Checks.
3. If you used a credit card, select Enter Credit Card Charges. 
4. Proceed to the Expenses tab and look for Accounts Payable.
5. Enter all other details of the transaction and click Save and close.

You can also refer to this video tutorial for additional guidance: How to Enter Expenses in QuickBooks Desktop.

Let me know in your reply if you're able to record the transaction. The Community is always willing to help if you need anything else. 

sorry to be really stupid but i don't have an  Accounts Payable (A/P). option how do i make one?

It's okay, Snowy. I'd be glad to help.

If you can't find the Accounts Payable account in the dropdown when writing checks, it might be because there's no bill created yet. To resolve this, you can create a dummy bill so that the system will generate the account. Then, you can delete the bill. To do so, here's how:

1. Go to the Vendors menu, then select Enter Bills.
2. Choose a Vendor from the dropdown, then fill out the Date, Amount, and Due date fields.
3. Pick the type of bill you want to record. "Expenses" is for phone service, rent, and utilities. While "Items" is for products, shipping and handling charges, and discounts.
4. Select an account from the Account dropdown.
5. Click Save to record the bill.
6. Open the bill again and hit Delete.

Once you're done, you can write a check for your vendor and choose the Accounts Payable account by following the steps provided by my colleague @JenoP above. 

In case you need guidance in recording refunds you received from a vendor, you can check out this article: Record a vendor refund in QuickBooks Desktop.

Please let me know if you need further assistance finding the Accounts Payable account when writing checks. Feel free to reply on this thread.