mac 2020 desktop: Use an asset account to track VENDOR prepayment AND record actual bills in the vendor account.
I have tried the option 2 method by creating an OCA account. However step three does not work in this scenario....
"Option 2: Use an Asset account to track the prepayment
You can write a check to the vendor and record it to an Other Current Asset (OCA) account, increasing the balance until you are ready to pay the final bill.
Create an Other Current Asset (OCA) account to track prepayments.
Go to the Lists menu, then select Chart of Accounts.
In the Chart of Accounts, right-click anywhere, then select New.
From the Other Account Types drop-down, choose Other Current Asset. Select Continue.
Enter Prepaid Inventory as the Account Name.
Select Save & Close.
Write a check to your Vendor.
Go to the Banking menu, then select Write Checks.
Enter the vendor name, date, and payment amount.
Go to the Expenses tab. In the Account column, select the OCA account.
Select Save & Close.
Enter the bill when the items arrive.
Go to the Vendors menu, then select Enter Bills.
Go to the Expenses tab, then select the OCA account.
Enter the amount of the prepayment as a negative value.
On the Items tab, enter the items. The bill will equal the balance owed after deducting the prepayment. Note that recording the bill will reduce the asset account.
Select Save & Close.
Pay the bill balance.
Go to the Vendors menu, then select Pay Bills.
Select the bill you entered, then Pay Selected Bills. QuickBooks will then create a Bill Payment Check for the balance.
View existing prepayments
Go to the Reports menu, then select Vendors & Payables and then Vendor Balance Detail.
Select Customize Report, then go to the Display tab.
Select the desired date range for the report.
Go to the Filters tab, then select Account from the list.
From the Account drop-down, select the asset account created to track prepayment amounts."
