Advance payment to supplier

In business, supplier do request for an advance payment (or deposit) from you before the actual bill and goods being delivered to you.

Since there is no bill received from supplier, how shall we enter this transaction?

The easier method is to use a Write Cheque. You can use a Write Cheque function in QuickBooks to record an advance payment make to your supplier.

In the Write Cheque form, the payee will be your supplier name, the No. will be used to record the Cheque number and account we shall use Accounts Payable account.

In this way, we can view this transaction in the A/P (Accounts Payable) ageing report and Balance Sheet (Under Accounts Payable account). Note: This amount should be not show in either the expense or cost of goods sold account as it is not realized. The transaction is just within the Balance Sheet accounts.

When the actual Bills is in, we can record it and knock it off with the advance payment made earlier.

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