Prepayments of POs


C

Chris Miller

When I order inventory or non-inventory (items for specific jobs) I am
usually charged before I receive the item. The way I do it is make a PO, and
order the item (either with or without the PO, but there's still a PO even
if where I order from doesn't accept it).

My question is how would you all suggest I make a prepayment on a PO? I do
not want to have to put another charge on the invoice for the negative
amount of the whole PO, and write a check the vendor charging it to a
Prepayments PO account like some suggest. That's too much trouble to go
through, then I have to go undo that when the item comes in and do it the
right way. That's like quadruple-entry.... ugh.

Anyone have a better way of doing this? I wish I could just receive a bill
before I receive the item, and not have to do it where the item is first (or
both come at the same time).

--
Thanks,

Chris Miller
Compuville Computers
www.compuville.net
 
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J

Jack

I would write a check to Vendor A for the amount of the purchase. On
the check stub where you enter the 'account' I would put Accounts
Payable. This will set up a credit in AP for Vendor A in the amount of
the check. In the memo field you can enter the PO # or something if you
like.

Issue the PO or not. Then when the bill comes in enter is as an AP
invoice, go to Pay Bills and 'pay' it with the credit in the Vendor's
account the check created.

Else, I suppose if you know the exact costs involved and I assume you do
you could write a check and use the items tab on the check to enter the
items in to inventory at the time the check is written and be done with
the whole affair, putting the freight on the expense tab.
 
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J

Joyce C.

Yes, if you have to pay before you get the goods, just cut a check
using the Write Checks feature and charge it to the Accounts Payable
account on the Expenses tab of the check. Make sure, though, that you
also enter the vendor name again in the Customer:job column on the
check. Since you selected your AP account, QB will know it's a vendor
name it needs and not a customer name. When the goods arrive, receive
against the PO just as you normally would and when the Enter bills
screen comes up change the Qtys to what you actually received and
record the bill. Now all you have to do is "connect" the payment you
made to the bill that you recorded so they will drop off of aging
reports and open balance reports, etc. You will do that when you go to
pay the bill on the Pay Bills screen. On that screen, you will see
your payment as a negative number and the bill as a positive number.
Select both of them and click OK. If you still owe money on the bill,
QB will cut a check for the balance. If the vendor owes you, then QB
will keep a negative balance in your AP account for that vendor so you
can use it against a future bill. If they equal each other, then they
will drop off the pay bills screen and all open balance reports.
 

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