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Level 2

When creating a new supplier/expense transaction, the payment account can't be 'other current asset' type, why?

per the link here about encoding advance payment to supplier: https://quickbooks.intuit.com/learn-support/en-us/accounts-payable/record-vendor-prepayments-or-depo... the option 2 ask to create an Other Current Asset account, but this account can't be used in supplier/expense transaction. Why?
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Best answer March 14, 2020

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QuickBooks Team

When creating a new supplier/expense transaction, the payment account can't be 'other current asset' type, why?

Hi @jones.chg,

 

Thank you for the amount of detail you've included in your post above. I'm here to clear things up for you. 

 

The product you're using is QuickBooks Online (QBO), while the article you mentioned is for QuickBooks Desktop (QBDT). These 2 products have different features from each other, which is why the steps listed in the article don't work for you. 

 

Since you need to record vendor prepayments, I suggest you create an expense transaction.

 

Here's how:

 

  1. Go to the + New menu.
  2. Select Expense
  3. Choose the vendor under the Payee drop-down menu.
  4. From the Payment account drop-down menu, choose a bank account where the payment came from. 
  5. On the Category details section, under the Category column, enter Accounts Payable (A/P).
  6. Type in the amount under the Amount column.
  7. When done, click Save and close.

 

When you receive the product(s) you ordered, you can then create a bill. 

 

Follow these steps:

 

  1. Move to the + New menu.
  2. Select Bill.
  3. Choose the same vendor under the Vendor drop-down menu. 
  4. Fill out the form with the necessary details such as the total amount you need to pay. 
  5. Tap Save when done.

 

Still, on the Bill page, click the Make payment button to proceed. Ensure that the bill you created above is checked, as well as the expense earlier. See the screenshot below for reference. 

 

 

In case you need to enter outstanding balances for customers or vendors, take a look at this article: How to enter outstanding balances for customers and vendors. It lists the accounts that are affected when you make these changes. 

 

Need further help? Drop a comment below, and I'll get back to you. 

View solution in original post

3 Comments
Highlighted
QuickBooks Team

When creating a new supplier/expense transaction, the payment account can't be 'other current asset' type, why?

Hi @jones.chg,

 

Thank you for the amount of detail you've included in your post above. I'm here to clear things up for you. 

 

The product you're using is QuickBooks Online (QBO), while the article you mentioned is for QuickBooks Desktop (QBDT). These 2 products have different features from each other, which is why the steps listed in the article don't work for you. 

 

Since you need to record vendor prepayments, I suggest you create an expense transaction.

 

Here's how:

 

  1. Go to the + New menu.
  2. Select Expense
  3. Choose the vendor under the Payee drop-down menu.
  4. From the Payment account drop-down menu, choose a bank account where the payment came from. 
  5. On the Category details section, under the Category column, enter Accounts Payable (A/P).
  6. Type in the amount under the Amount column.
  7. When done, click Save and close.

 

When you receive the product(s) you ordered, you can then create a bill. 

 

Follow these steps:

 

  1. Move to the + New menu.
  2. Select Bill.
  3. Choose the same vendor under the Vendor drop-down menu. 
  4. Fill out the form with the necessary details such as the total amount you need to pay. 
  5. Tap Save when done.

 

Still, on the Bill page, click the Make payment button to proceed. Ensure that the bill you created above is checked, as well as the expense earlier. See the screenshot below for reference. 

 

 

In case you need to enter outstanding balances for customers or vendors, take a look at this article: How to enter outstanding balances for customers and vendors. It lists the accounts that are affected when you make these changes. 

 

Need further help? Drop a comment below, and I'll get back to you. 

View solution in original post

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Level 2

When creating a new supplier/expense transaction, the payment account can't be 'other current asset' type, why?

Ryan,
    Thanks, it works.
    But the process seems not so efficient and some issues:
1. The final 2 steps, bill and bill payment,  can be really combined as one like the process introduced in before link (desktop version). I think this can be easily resolve if your developing team can add A/P accounts into the Payment account drop-down list in the  Supplier/Expense screen, or let Current Asset being work.
2. The final step, bill payment, we pay by credit instead of real current asset account, so the Bank/Credit account drop-down list is redundant, but we still need to choose one even the system doesn't use this choose as making the transaction. I think this is bug. 

Hope these points can help your team to make QBO better. I love this app because it's really very helpful for a small business without too much accounting efforts.

Highlighted
QuickBooks Team

When creating a new supplier/expense transaction, the payment account can't be 'other current asset' type, why?

Thank you for getting back to us and for the recommendation, jones.chg.

 

I'll take note your request about using the accounts payable for the payment account. And, pass it along to our Product Team so they can take a look and discuss about this feature.

 

For now, I recommend visiting the Product Updates page to know what's new and coming in the system. This link has topics about the latest improvements in QBO.

 

Feel free to leave a comment below if there's anything else I can help you. I always have your back.

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