Vendor Prepayment(Advance Payment) and Overpayment made - Quickbooks Online

Hi,

Thankyou for the response. Can you tell me in API Explorer which entity corresponds to "Expense" which we are creating in the UI.

Hi,

For Overpayments I want to ask on your solution that VendorCredit will be made after an overpayment is made. So where or how we have to register the overpayment on which we will make the VendorCredit.

For Advance Payments I created a demo Vendor and create an Advance Payment and a Bill for that vendor.

But I am receiving correct Open Balance for the vendor but in the transaction list of that Vendor the Expense and the Bill is getting clubbed and I am getting the clubbed amount of expense and Bill. But it should be negative for the expense and positive for Bill.

Enteries I made -

1. Expense(Advance Payment) to the Vendor, which should be negative but is showing positive.

2.Bill which is showing positive.

Good day, @jitendrakumar.

Allow me to jump in and share some information about the vendor's advance payment in QuickBooks Online (QBO).

For entering advance payment for vendors ensure to create an expense and check the affected accounts as Accounts Payable (AP). This way when you're ready to create a bill it'll automatically show to add the prepayment.

1. Make sure you have the supplier listed in QuickBooks Online (QBO). Skip this step and continue to step 3 if you've already added the supplier to your account. If not, select Expenses, then Suppliers.
2. Create a new Supplier by filling out all the information, then select Save.
3. Go to + New.
4. Select Expense.
5. Create an expense for the supplier by selecting a Payee and Payment account.
6. Under the Category column, select Account: Accounts Payable (A/P), then enter the description and the amount.
7. Select Save and close.

Once your bill is created, we can apply the credit as a payment. Please see the screenshot below for your reference.

Furthermore, to make sure that you can filter and customize reports according to how you want them to show the information. Learn from this article for your guide: Customise Reports In QuickBooks Online.

Feel free to let us know if you need additional assistance with advance payments. Remember, we're here to make sure we get you covered, @jitendrakumar.

Hi,

Adding advance payment to vendor (in Accounts Payable) like you have mentioned creates Unapplied Cash payment Expense at the end of the PnL statement which should subsequently settle once i generate an actual bill against the prepayment and settle the bill by applying the (prepaid amount). However, this is not happening which makes my PnL statement incorrect by showing prepayment and actual bill payment twice (whereas i settled my bill payment thru the credit or prepaid amount). Can you please help in resolving this issue.

I appreciate you joining this thread, Khurrum. Let me share some insights on adding advance payments in QuickBooks Online(QBO).

It's worth noting that Accounts Payable(AR) transactions typically involve expenses accrued but not yet paid. These transactions represent liabilities and don't show in the Profit and Loss(P&L) statement. Please ensure you designate the correct category when generating advance payments.

Moreover, you can review the doubled bill payment transaction by clicking the Total Expenses tab on your Profit and Loss report. It will route you to the Transaction Report where you can view and modify the exact transaction. Refer to the screenshot below for visual guidance.

I've also included a detailed resource about working with bill payments, which may come in handy moving forward: Enter bills & record bill payments.

Please don't hesitate to reply if there are any additional questions. Have a wonderful day!