How to record payment in vendors installments beginning balance that can be seen as a amortization process

I know two options to record vendor installment payments, emint. I'll elaborate on them in detail below.

In QuickBooks Online (QBO), you can enter vendor installment payments or prepayments using Accounts Payable (A/P) or an asset account. Before doing any of the options, I'd recommend consulting your accounting professional to know which is best for you.

If you opt to use Accounts Payable to record the prepayment or installment, you can write a check to the vendor and record it to your A/P account. This decreases the balance until you're ready to enter the final bill.

If you want to 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.

For the step-by-step guide, please see this article: Record vendor prepayments or deposits for prepaid parts or services.

Additionally, you can pull up the Transaction List by Date report to get details on all money paid to a vendor for the year in QBO. You may want to check out this article to guide you in completing the process: Run a report with vendor totals.

Please feel free to leave a comment below if you have other concerns about recording vendor transactions in QBO. I'm always ready to help.

Thaank you so much. How can I record it to accounts payable beginning balance since it is an ending balance from 2020.

We understand how recording payments in vendor installments is relevant to ensure your account's amount balance is accurate, emint.

I've seen here that you've posted a similar query in this forum. My colleague has already provided an answer for you to keep you going in managing these payments. You may want to visit this link for your reference: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/how-to-record-[…]e-advance-....

Additionally, you can start running specific reports to help you review and track your business finances and other reporting data in your account.

Let us know in the comments below if you require additional assistance managing vendor payments, emint. We'll keep this thread open so we can get back to you at any time. Keep safe!

But is should be recorded as beginning balance of 2021. If I will record it in expense section, there will be deduction in cash. How can I record it as beginning balance?

Hi there, @accounting-emint. 

I'm glad that you have given us more information about your concern. To further clarify what has been discussed by my colleague, you can record it as a vendor prepayment  in QuickBooks Online (QBO).

Since you are referring to the previous year, there's a possibility that you'll record a journal entry. We recommend contacting your accountant for advice.

Meanwhile, here's how to record a journal entry:
 

1. In your QuickBooks Online company, select + New.
2. Select Journal entry.
3. On the Account field, enter the amount in the correct column. The amount from the Credit and Debit should be match.
4. Type the information in the description section to note why you made the journal entry.
5. Hit Save and new or Save and close.
   
   

If you want to learn more on how to manage your journal entries, you can refer to these articles:
 

• Reverse or delete a journal entry in QuickBooks Online.
• Print a journal entry report in QuickBooks Online.
  
  

Keep us posted if you have more questions or concerns about managing your transactions in QBO. We'll always be here to assist you. Take care!