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anniesteephan
Level 1

Supplier invoice

Hi,

 

We resell a product. We pay in advance to our provider, they credit it to our account.

 
When we sell product, our supplier invoice us.
 
Do we need to manually enter each invoice our provider generate ? Since the invoice amount is small, there will be lot of small invoice. If we have to manually enter each invoice generated, it is going to be 2x work as we need to generate invoice for customer, then enter invoice generated by our supplier to quickbooks.
 
What is the proper way to handle this ?
 
Thanks,
 
Annie 
Solved
Best answer September 13, 2017

Best Answers
qbteachmt
Level 15

Supplier invoice

I recommed that you are handling Vendor (supplier) prepayments, which would be similar to Escrow activities.

 

I would start with a Bank type of account for that supplier's name. They have Your Funds. That makes this Your Asset. Prepaying is Your Asset, and using Banking gives you more transaction tools.

 

When you send them funds, that is a Transfer from your operational checking to the Vendor Escrow Bank.

 

When you get notified they have Applied your funds to a sale you made from their products, you enter a Check Expense and that is from the Vendor Bank, to show how they spent your funds. You now can use Items, Accounts, Qty, and Track that this is for that specific customer's sale. This is Not Billable to them, since you already made the sale.

 

And now you have one account that you manage for the Total of your funds still on hand with the supplier.

 

So far, there is no reason to use AP at all.

 

Run this part your own accountant to confirm it meets your reporting requirements.

View solution in original post

4 Comments
AliciaRoy
Level 8

Supplier invoice

Hi Annie, 

 

Let's work together to get these transactions entered properly. 

 

I have a few questions before we begin, just to ensure we're on the same page:

  • You stated that you pay the supplier in advance, and then they invoice you once you sell the product. Do you mean you pay the entire amount in advance, and then they send you a receipt once you sell the product? Do you mean that you make a down payment of a smaller amount, and then they invoice you for the rest once you sell the product?
  • Are you wanting to mark the expense billable to your customer, or would you prefer to keep the transactions separate?
  • Are you using QuickBooks Online or QuickBooks Desktop?

Please leave a comment with additional details, and then we'll continue from there. 

annieyujin
Level 1

Supplier invoice


Sir/Madam,

Thanks for your reply.

We are using QuickBooks Online.

We pay our supplier like INR 25,000/-. They keep this as credit. As long as we have credit with us, we are allowed to order product from them. When the amount goes low, we pay them again.

Now our customer pays us for a product that cost INR 500/-, we buy it from our provider and sell it to our customer. At this stage, our supplier create invoice for the purchase we made.

Also we invoice our customer for the product.

So each time we sell a product, we get one invoice from our supplier. And we generate one invoice on our side for our customer.

>  and then they invoice you for the rest once you sell the product?

Yes

> Are you wanting to mark the expense billable to your customer, or would you prefer to keep the transactions separate?

What we want to understand is how to deal with invoice generated by our supplier for GST purpose (input credit).

Do we need to enter each invoice generated by our supplier to quick book manually ?

Thanks,
 
Annie

AliciaRoy
Level 8

Supplier invoice

Thanks for providing these details. 

 

In this case, yes, you'll want to ensure you're recording the bill from your vendor.

 

  • First you need to enter the bill for INR 500/- by going to the + icon and selecting Bill.
  • Once you've filled out the form and saved it, you can record the bill payment with the vendor credit. The following article has instructions on how to do so: https://community.intuit.com/questions/1345980. 

 

Please let me know if this is what you're looking for, or if you have any additional questions. 

 

 

qbteachmt
Level 15

Supplier invoice

I recommed that you are handling Vendor (supplier) prepayments, which would be similar to Escrow activities.

 

I would start with a Bank type of account for that supplier's name. They have Your Funds. That makes this Your Asset. Prepaying is Your Asset, and using Banking gives you more transaction tools.

 

When you send them funds, that is a Transfer from your operational checking to the Vendor Escrow Bank.

 

When you get notified they have Applied your funds to a sale you made from their products, you enter a Check Expense and that is from the Vendor Bank, to show how they spent your funds. You now can use Items, Accounts, Qty, and Track that this is for that specific customer's sale. This is Not Billable to them, since you already made the sale.

 

And now you have one account that you manage for the Total of your funds still on hand with the supplier.

 

So far, there is no reason to use AP at all.

 

Run this part your own accountant to confirm it meets your reporting requirements.

View solution in original post

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