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Join nowGood 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! Go to Solution.
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:
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!
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:
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:
How to group Accounts Receivable or Accounts Payable account types.
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.
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
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:
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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