dodero54
Level 1
‎October 08, 2024 08:36 AM

Payments made to Suppliers, but invoices not yet received.

Hi,

I seek guidance on processing a payment made to a supplier where the invoice will be received in three months. The payment should be treated as a prepayment, but the amount must still be reflected in the Accounts Payable ageing reports.

Kindly advise on the appropriate steps.

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Clark_B
QuickBooks Team
QuickBooks Team
‎October 08, 2024 10:01 AM

Other Questions

It's nice to see you here in the Community, @dodero54.

 

Let me provide information to help you apply the payment as prepayment in QuickBooks Online (QBO).

 

To start, you can made an advance payment to a supplier by recording it in QBO using the Expense feature and select the Accounts Payable (A/P) account from the category section. This will set a credit on the supplier section, which you can use for the future bill.

 

Here's how:

 

  1. Go to the +New and select Expense.
  2. Create an expense to the supplier by selecting a Payee and Payment account.
  3. Under the Category column, select Account: Accounts Payable (A/P), then enter the description and the amount.
  4. Select Save and close.

 

For reference, you can check this article: How to record the advance payment made to supplier.

 

Once the bill is ready, you can apply the credit as a payment. Here's how:

 

  1. Go to the Expenses, then select Supplier/Vendors.
  2. Click the supplier's name, and find the bill.
  3. Under the Action column, click the Pay Bills or Make payment link.
  4. From the Bill Payment page, put a checkmark on the check you've recorded under Credits.
  5. Hit Save and Close.

 

I'll also add this article to help you get the most out of your financial reports: Customise reports in QBO.

 

If you have further concerns about the process of the prepayment, please tag me in the comment section, @dodero54. I'll assist you in any way possible.

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