When recording the transaction as an Expense, ensure that it is associated with the Accounts Payable account, J28. I can provide you with some guidance on this.
The Accounts Payable account is crucial as it impacts the balances of both bills and vendor profiles. This allows us to use it for payment when the actual bill is received. Here are the steps to create an advance payment:
- Click the + New button and select Expense.
- Enter the vendor name in the Payee field.
- Choose the bank in the Payment account field.
- Go to the Category section and enter Accounts Payable (A/P) in the Account column.
- Enter the amount and other necessary details.
- Click Save and close.
Then, we can proceed in creating the bill with the inventory items. Lastly, we link the Expense to the Bill by creating a Bill payment.
This article can be a useful resource if you require guidance on managing your bills and expenses: Enter and manage expenses.
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Furthermore, we can perform reconciliation once the transactions have cleared from the bank and are reflected in the statements.
We're here to support you if you need clarification on creating and applying prepayments to bills. Have a great day!
