How to pay deposit on bill from vendor against a purchase order?

I have all the information you need about your PO deposit payment to your vendor, @piperppp.

We don't need to process anything on your purchase order as the vendor requires a deposit. We can issue a 50% deposit check that will impact the Accounts Payable. Follow these steps to do so:

1. Choose the bank account from which the money will be taken.
2. For the Pay to the Order, this should be the Payee Name or whoever the check was issued for. When prompted that PO is available for this vendor, click No, then select Write Check. 
3. Click Expenses, select the appropriate category, and enter the amount.
4. Check the amount in numbers. Below, the Pay to the Order field will automatically show the Dollar amount in words. 
5. Select Save & Close.

Once the orders are received, we can process the received items, record them in Quickbooks, and then enter a bill against the received items. The check we create will show a supplier's credit that we can use for payment of the bill.

Additionally, let me share this article to help you unapply a refund to an invoice: Remove or unapply a credit from an invoice or bill.

Keep me posted if you still have questions about your PO and Bills. Have a great day.

Okay, that looks fine, but I am not understanding the part about entering the bill when it comes and using a supplier's credit to pay it. Can you elaborate on that?

Thank you for your prompt response, Piperppp.

If you have received a credit from a vendor (for example, due to an overpayment or a returned item) this should be recorded as a credit in QuickBooks. To do this, choose the Credit option on the Vendors menu. I'd gladly provide detailed steps to guide you through this process.

To enter or record a received bill in QuickBooks Enterprise (QBES) using a supplier’s credit, follow these steps below:

Enter the Bill:

1. Open QuickBooks Enterprise and go to the Vendors menu.
2. Select Enter Bills.
3. In the Enter Bills window:
   • Vendor: Choose the vendor from whom you received the bill.
   • Date: Enter the date of the bill.
   • Amount: Enter the total amount of the bill.
   • Bill No.: Enter the bill number for reference.
   • Expenses/Items: Allocate the bill amount to the appropriate expense accounts or items.
4. Click Save & Close to record the bill.

Enter the Supplier’s Credit:

1. Go back to the Vendors menu and select Enter Bills again.
2. In the Enter Bills window, tick the Credit radio button at the top.
3. Fill in the details:
   • Vendor: Choose the same vendor.
   • Date: Enter the date of the credit.
   • Amount: Enter the credit amount.
   • Expenses/Items: Allocate the credit amount to the appropriate accounts or items.
4. Click Save & Close to record the credit.

Apply the Credit to the Bill:

1. Go to the Vendors menu and select Pay Bills.
2. In the Pay Bills window:
   • Select the Bill: Check the box next to the bill you want to pay.
   • Set Credits: Click on the Set Credits button at the bottom.
3. In the Apply Credits window:
   • Select the Credit: Check the box next to the credit you want to apply.
   • Click Done.
4. Verify that the credit has been applied correctly in the Pay Bills window.
5. Click Pay Selected Bills to complete the process.

These steps will ensure that the supplier’s credit is properly applied to the received bill in QBES.

Moreover, always review your transactions to ensure everything is recorded correctly, and use QuickBooks reports to verify that the bill and credit have been applied properly.

You may also find this article helpful for additional information on customizing the reports based on your business needs in QuickBooks: Customize vendor reports.

Please tag my name in your reply on the Community forum for further inquiries about managing vendor bills-related concerns in QuickBooks Enterprise. I'm more than willing to assist you further. Have a pleasant day!

You still have not fully answered my original question and now you are talking about credits. Why would there be a credit from the vendor? Remember, the situation is that we created a purchase order and the vendor sent us the bill and is asking for a 50% deposit before they ship anything to us. So, how do I enter a bill and connect it with the purchase order but only pay 50% of the price without it affecting the line item prices on the PO and without the PO showing items as being received, because we have not received them yet? Even when we do receive the items, we will need to pay the other 50% of the total and then we will have to receive items on the purchase order, but again, we do not want to change the price of the original items on the purchase order. 

There is nothing about a credit that we will have to deal with in this situation. Does this make sense? We have a purchase order and once we receive the items on the purchase order, the receiving team will go in and receive them in Quickbooks and then I would receive a bill from a vendor and I would go in and Enter Bill Against Received Items. However, I now have a bill and NO received items and they only want 50% of the bill. What should I do to get this entered and paid?

I'm here to ensure this process goes as smoothly as possible for you, Piper. I'll assist you with managing your bills, ensuring everything is organized and up-to-date. Additionally, I will ensure that the 50% payment to your vendor is entered into QuickBooks Desktop (QBDT). This will help maintain accuracy in your records and keep your vendor payments on track.

First, you can create a check affecting Accounts Payable since you want to record the 50% downpayment without affecting the items. Here's how:

1. Go to Banking and choose Write Checks.
   
   
   
   
2. Enter the vendor name, date, and 50% payment amount.
3. In the Account column, select Accounts Payable.
4. From the Customer: Job column dropdown, pick the vendor name.
5. Hit Save & Close.
   
   

Once you receive the items, convert the PO to the bill, then apply the 50% advance payment when paying the bill. Please refer to the steps below:

1. Go to the Vendors menu, then Enter bills.
2. Enter the vendor. You'll receive a prompt message to link a PO to the bill. Tap Yes to confirm.
   
   
   
   
3. Fill in the other necessary fields.
4. Hit Save & Close.

Then, apply the prepayment to the bill.

1. Go to Vendors and click Pay Bills.
   
   
   
   
2. Select the bill you want to associate with the prepayment.
   
   
   
   
3. Tap Set Credits, then Pay Selected Bills.
4. The 50% prepayment will be displayed in the Set Credits screen. Ensure that it is checked, then hit Done.
   
   

For further information about this process, you may check out this article: Record vendor prepayments or deposits for prepaid parts or services.

If you have any questions or need further assistance handling bills or payments, please do not hesitate to reach out. I am here to provide prompt assistance. Whether you need clarification about specific transactions or need additional help with QBDT or any related tasks, feel free to leave a comment. Your satisfaction is important to me, and I am committed to making sure all your financial management needs are met, Piper.