Please help me how to do with prepayment for vendor on AP with cash basic

Hello kieuvong,

We have different ways to record a vendor prepayment in QuickBooks. Let me share them with you and help you with the steps.

• Use an Accounts Payable to record the prepayment.
• Use an Asset account to track prepayment.

Below are the overview of the steps of each options.

To use the Accounts Payable:

1. Create a check for the vendor. You can write in the description column that it was a cash basis.
2. Enter the bill.
3. Apply the prepayment to a bill.

To use an Asset account to track:

1. Create an Other Current Asset (OCA) account to track prepayments.
2. Write a check to your vendor.
3. Enter the bill when the items arrive.
4. Pay the bill balance.

Please refer to this article for the step-by-step instruction: Record vendor prepayments or deposits for prepaid parts or services.

The screenshot shows how it looks like to link your credit to your bill.

I've also added our page about expenses and vendors in case your need some help articles for you future tasks.

Drop a comment below if you have other concerns. We're always here to help.