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How do i apply a prepayment on a accounts payable that does not exist yet

 
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QuickBooks Team

How do i apply a prepayment on a accounts payable that does not exist yet

I'm glad to see you here today, kstrabajo51.


I’m here to ensure you’ll be able to apply the prepayment for your payable that doesn’t exist.

 

To help effectively manage the transaction, you can write a check or create an expense to the vendor and record it to your Accounts Payable account, decreasing the balance until you’re ready to enter the final bill. I’ll walk you through the step by step process.


To create a check:

 

  1. Go to the Plus icon (+) at the top.
  2. Under Vendors, select Check.
  3. Choose the Payee from the drop-down list.
  4. Enter the correct bank account where the money will be withdrawn.
  5. In the Account section, select Accounts Payable.
  6. Fill in the field boxes.
  7. Once done, click on Save and close.

To enter an expense transaction:

 

  1. Go to the Plus icon (+) at the top.
  2. Under Vendors, select Expense.
  3. In the Payee field, select a vendor.
  4. Choose the bank/credit account to credit the expense.
  5. Enter the date of purchase in the Expense/Payment date field and specify the Payment method for the expense.
  6. In the Accounts section, select Accounts Payable and enter the amount.
  7. Click on Save and close.


When you’re ready to apply the prepayment to the bill, you’ll need to associate the transaction to  Accounts Payable. To link the transaction, please follow the steps below:

 

  1. Go to the Expenses on the left panel.
  2. Select the bill you’re trying to pay.
  3. Click on the Make payment button.
  4. On the Bill Payment screen, go to the Credits section and select the prepayment.
  5. Click on Save and close.

I've attached articles to give more insights about writing checks and creating expense in QBO:

 

 

That's it. The prepayment is already applied to accounts payable and recorded in QBO.

 

Reach out to me directly if you have additional questions about tracking vendor transactions. I'll be around to answer them for you. Enjoy the rest of your day.

 

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