Recording vendor deposit

Hello, Manizha1983.

I can walk you through recording the vendor's deposit in QuickBooks Desktop.

You can use an Asset account to record the vendor's prepayments or deposits. I'll show you how.

Step 1: Create an Other Current Asset (OCA) account:

1. Go to the Lists menu, then Chart of Accounts.
2. In the Chart of Accounts, right-click anywhere, then select New.
3. From the Other Account Types drop-down, choose Other Current Asset. Click Continue.
4. Enter Prepaid Inventory as the Account Name.
5. Once done, hit Save & Close.

Step 2: Write a check to your vendor:

1. Go to the Banking menu, then Write Checks.
2. Enter the vendor name, date, and payment amount.
3. Click the Expenses tab. In the Account column, select the OCA account.
4. Once done, hit Save & Close.

Step 3: Enter a bill when the item arrives:

1. Go to the Vendors menu, then Enter Bills.
2. Click the Expenses tab, then select the OCA account.
3. Enter the amount of the prepayment as a negative value.
4. On the Items tab, enter the items. The bill will equal the balance owed after deducting the prepayment.
5. Once done, hit Save & Close.

Step 4: Pay the bill balance:

1. Go to the Vendors menu, then Pay Bills.
2. Select the bill you entered, then Pay Selected Bills. QuickBooks will then create a Bill Payment Check for the balance.

I encourage you to visit this article for the complete guide: Record vendor prepayments or deposits for prepaid parts or services.

In addition, I've included this resource about handling customers' deposits in QuickBooks Desktop: Record a retainer or deposit.

Don't hesitate to add any details below if you have further questions about the vendor's deposit. I'm always here to help you.