Supplier Payments

Record a cheque to Accounts Payable.

entering a

credit with

That's how you do it. If you receive money from a vendor or customer before an invoice or bill is entered then it'll show as you owing that money to them (credit on account) until you tell QB how to apply the credit.

But when I do this it doesnt show that the Supplier is in credit at all :(

I cant enter a supplier payment tho unless there is a bill to pay, which I dont have as yet. I can enter a payment from the bank account, but it then doesnt show that the supplier is then in credit. I just want to be able to enter a payment on account really so that I can reconcile my bank account.

I'm confused now. Why would a vendor/supplier, someone you'd owe money to, send *you* money to put on account? That's something a customerd does.

You'd use the Make Deposits screen to enter the Vendor name, accounts payable as account, and amount. This puts a positive number on A/P saying you owe that back. I can't imagine any instance where I've ever seen a supplier giving a buyer money on account.

It should show, on your Unpaid Bills or A/R reports, a negative amount under the supplier's name now. Unless you are speaking of the supplier sending you money which is what it seemed like in my last post to you.

1. If you sent money to the supplier then you use Write Checks, record supplier's name, account is a/p and select supplier's name again in customer/job. Now you'll have a negative number appearing on the A/P reports for that supplier. That's a credit.
2. If you're sent money by the supplier (and there's no reason for that) then you'd use Make Deposits and it would be a positve number on the A/P report.

RECORD A CHEQUE TO ACCOUNTS PAYABLE,

***NOT*** a bill payment.

how???

customer

Ok. Let's start again.

Just exactly are you trying to achieve.

Are you moving accounts over to QuickBooks, and need to show a credit balance for a particular supplier(vendor)?

Are you making a payment in advance to a supplier (vendor) and need to show that check in your bank account, as well as have it affect the vendor balance?

If the former, go to your vendor list, select the vendor and click edit. There will be a link for the helpfile as to 'How do I adjust the Current Balance?'

If the latter, as !-! and Tee suggested, the method is to use the Write Checks window (as opposed to the Pay Bills window - since there is no bill at the moment). In the Write Checks window you would put the vendor name in the Customer:job section and Accounts Payable as the account. This will create a credit in A/P assigned to that vendor.

Later, when you get the bill, enter it in the 'Enter Bills' screen. When you want to PAY the bill use the 'Pay Bills' window, there will be a credit available for the vendor. Select the vendor bill(s) you want to pay, each in turn, and use the Set Credits button to apply the credits for the check you wrote.

I am not an accountant so we have to keep this on my amateur level. I use QB2000 but yours should be the same (even though they may have come up with an easier way by now).

Before trying anything doubtful in your mind, go File | Open Company right click on your Company.qbw, click Copy, right click again, click Paste. You now have a copy of your QB company file. Double click on it, click on Company | Company Informant ion and change the Company Name to a line of dashes or some such so you will know that you are working with your test file.

Let's use QB terminology for now. What are you trying to do?

1.) Do you want to record a down payment (or payment in full) to a Vendor (supplier) who will then send you the goods.

or

2.) Do you want to record a payment received from your Vendor because you overpaid a Bill, or because he is giving you a subsequent discount. (A Bill is an invoice from your supplier; an Invoice is what you send to your Customer)

If 1.), open Banking | Write Checks Enter the name of your Vendor at "Pay to the order of". Enter the Date and Amount of your cheque. Make a note in the Memo field as a reminder to yourself. In the Account field enter Accounts Payable (or whatever you call your A/P). Enter something in this memo field if you want. Click on Save & Close.

Go to Lists | Chart of Accounts and open your A/P . You should now see the amount of the cheque under the "Paid" column.

When you get the Bill for the goods shipped from your Vendor you enter it in Vendors | Enter Bills. You will have to decide to what account the goods will be charged (most likely split to 'Cost of Goods Sold' or any of the Expense accounts set up, etc.) plus one or more Tax accounts).

Now you open the Vendor | Pay Bills window and you will find 2 entries for that Vendor name. The first, without a date (may be changed by now) with Bill Amt. and Amt. Due both prefixed with a minus sign and a second entry with the date and amount just entered in the Pay Bills Window.

Click a tick mark sign in front of the two entries and you will see the total line at the bottom of the column Amt. Paid torn to 0.00 (zero).

Click on Pay & Close.

If this is what you want to do, let us know if it worked. Arno

Thank you Tara, I will try again and see how I get on :) But it is a payment to a customer that I'm wanting to do, as per my original message :)

Ok, no need to shout now, lol :)

Thank you Arno for your detailed response, I will try exactly what you typed and let you know how I get on.

Much appreciated :)

I'm going to try using the Write Cheque, again, and see if the suppier balance is then shown as in credit, which is what I am wanting. Arno wrote a good detailed response so I'll try that.

Much appreciated everyone :)

Arno,

Many thanks for your detailed response, and I'm glad to say it worked. Much appreciated :):):) What I found I was doing wrong was not using the Accounts Payable, DOH!!!

Colin.

Many thanks to everyone that replied to my question, I wasnt assigning the payment to ACCOUNTS PAYABLE, which seemed to be my problem, all is fine and dandy now :)

Colin.

I am glad it worked. I am a slow 3 finger typist and in a "Test" company made sure that every step worked before passing it on.

Nothing worse than getting advice from someone who is three steps ahead. Stick around here, create your own help file from answers given to questions. It has helped me an awful lot. Arno

Thanks again Arno, I'm sure I'll be asking many more 'stupid' questions over the coming weeks/months :(

Colin.