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David_H1
Level 1

Enter a roof quote and pay deposit

Good day,

 

Here is my situation.  I was asked to write a check to 'roof Co.' for 500.00 as a deposit. The total cost on there invoice is 30000.00.  Because we excepted the quote I entered the quote as an bill. I then used [Pay Bills] and paid 500.00 toward the total.  Was this the right way to do it?

 

Now more info.  We took out a personal loan to do the parking lot and the roof.  The loan was deposited two months before the roof quote was OKed.

 

Thank you in advance

Dave

 

 

 

 

Solved
Best answer May 11, 2021

Best Answers
Catherine_B
QuickBooks Team

Enter a roof quote and pay deposit

Hello there, Dave.

 

Thanks for keeping us posted. 

 

When you purchase an item from a vendor, the vendor might need you to make partial payments of the price before delivery. You can write a check to the vendor and record it to your Accounts Payable (A/P) account, decreasing the balance until you are ready to enter the final bill. 

Here's how: 

  1. Create a check for the vendor.
    1. Go to the +New button and then select Checks.
    2. Enter the vendor name and date. 
    3. Under the Category details section, select Accounts Payable under CATEGORY.
    4. Enter the deposit amount. 
    5. Select Save & Close.
  2. Enter the bill.
    1. From the left menu, click +New then select Bills.
    2. Fill in the necessary information.
    3. Select Save & Close.
  3. Apply the prepayment to a bill.
    1. Click +New, then select Pay Bills.
    2. Select the bill you want to associate with the prepayment.
    3. Under the Credits section, select the Check you created.
    4. Click Save and close after reviewing the amount paid.

I recommend reaching out to an accountant if you used the loan amount to pay the roof quote. They can walk you through the correct process so we don't mess up your books. You can use the links provided by my colleague or visit our Community Help Articles page for more references. 

 

Just let me know if you have other questions in recording payments to your vendors. I'll be around to help. Take care!

View solution in original post

3 Comments 3
ShiellaGraceA
QuickBooks Team

Enter a roof quote and pay deposit

Thanks for visiting us here today, @David_H1.

 

I have some information about recording your quote and deposit. You could've used the A/P account when you write the check to link it to your bill. Since you've already created a pay bill transaction, you'll want to delete the check you previously created to record this properly.

 

To delete:

 

  1. Go to +New. Then, choose Check.
  2. Tick the clock icon at the top left of the screen.
  3. Under Recent Checks, locate the check and open it (see the image below).
  4. Hover towards the bottom and then, tap More.
  5. Click Delete and then Yes when prompted.

 

 

 

About the loan, you'll need to set up a liability account to track it. After that, create a journal entry to record the loan. Refer to this article for step-by-step instruction: Set up a loan in QuickBooks Online.

 

Learn more about the A/P account in these articles: 

 

 

In case you need help with other tasks in QBO, click this link to go to our general topic with articles. Look for responses that fit your concern.

 

 

Let me know if you still have questions or concerns with vendor transactions. I'm more than happy to answer them for you. Take care and have a great day ahead.

David_H1
Level 1

Enter a roof quote and pay deposit

Thank you @ShiellaGraceA 

 

The Invoice amount and the payment is in the A/P and shows the balance.  Should I have not used the 'Bill Pay' function? 

The Loan is setup like you said.  How should I connect the loan to the Invoice?

Right now it 'looks' like we spent more than we took in. 

 

Once again thank you for your help

Dave

 

 

Catherine_B
QuickBooks Team

Enter a roof quote and pay deposit

Hello there, Dave.

 

Thanks for keeping us posted. 

 

When you purchase an item from a vendor, the vendor might need you to make partial payments of the price before delivery. You can write a check to the vendor and record it to your Accounts Payable (A/P) account, decreasing the balance until you are ready to enter the final bill. 

Here's how: 

  1. Create a check for the vendor.
    1. Go to the +New button and then select Checks.
    2. Enter the vendor name and date. 
    3. Under the Category details section, select Accounts Payable under CATEGORY.
    4. Enter the deposit amount. 
    5. Select Save & Close.
  2. Enter the bill.
    1. From the left menu, click +New then select Bills.
    2. Fill in the necessary information.
    3. Select Save & Close.
  3. Apply the prepayment to a bill.
    1. Click +New, then select Pay Bills.
    2. Select the bill you want to associate with the prepayment.
    3. Under the Credits section, select the Check you created.
    4. Click Save and close after reviewing the amount paid.

I recommend reaching out to an accountant if you used the loan amount to pay the roof quote. They can walk you through the correct process so we don't mess up your books. You can use the links provided by my colleague or visit our Community Help Articles page for more references. 

 

Just let me know if you have other questions in recording payments to your vendors. I'll be around to help. Take care!

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