paid a vendor bill with an asset (equipment)

GolfNut72 · ‎August 18, 2022

My client has several outstanding invoices from one of his vendors. I have entered the bills from the Vendors into QBO and they appear in Accounts Payable.

Last week, my client made an agreement with the vendor to purchase a piece of equipment for that vendor, with the purchase price being reduced from the outstanding A/P Balance.

The equipment was purchased on a CC and I have that information.

What I am puzzled about is how to record the transaction of the purchase of the asset and the transfer of that asset from the client to the vendor and how to reflect that in A/P.

Thanks

EJ

Rainflurry · ‎August 18, 2022

@GolfNut72

Here's my $.02. I would record a CC charge for the amount of the equipment purchased and use the vendor with open A/P as the Payee and use A/P as the Category. That will record a cc charge and a corresponding credit that can be applied to the vendor's outstanding A/P. Although the cc charge was made with a different vendor, you need to use the vendor with the outstanding A/P as the Payee in order to have a credit that can be applied to a bill. Just make good notes in the memo field as to why it was recorded this way.

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Rainflurry · ‎August 18, 2022

@GolfNut72

Here's my $.02. I would record a CC charge for the amount of the equipment purchased and use the vendor with open A/P as the Payee and use A/P as the Category. That will record a cc charge and a corresponding credit that can be applied to the vendor's outstanding A/P. Although the cc charge was made with a different vendor, you need to use the vendor with the outstanding A/P as the Payee in order to have a credit that can be applied to a bill. Just make good notes in the memo field as to why it was recorded this way.

AlcaeusF · ‎October 04, 2022

Hello Rainflurry,

I have reviewed the solution you’ve shared and it's correct and accurate. Thank you for sharing your inputs to help address the issue.

We love to see members supporting one another! Have a great day.

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paid a vendor bill with an asset (equipment)