Hello there, Ian. You can record the prepayment to your supplier (vendor) as an Expense so that it can be allocated to the invoice once it's received. Once the supplier provides the invoice, you can create a Bill and match the prepayment accordingly. Here's how: Go to + New and select Bill.Fill out all necessary details for the invoice, including date, due date, amount, bank account information, and save it.Make sure the supplier matches the one for whom you recorded the prepayment.Click Save and close. Once that's done, apply the Expense you previously recorded to the Bill: Go to the Expenses menu.Locate and click the prepayment transaction you recorded earlier.Click the arrow in the upper-right corner of your screen.Select the Bill from the supplier that matches the prepayment amount and click Add. Review the details and click Save and Close. Next, review the supplier's balance to confirm the payment has been correctly applied: In the Expenses menu, go to the Suppliers tab.Select your vendor and locate the Bill.Ensure the Bill is reflected as paid. Please let us know if you need any additional assistance. We're here to help!

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Ian69

Question

I have made a payment but I have not yet received the invoice. How can I add this to the Supplier to be allocated against the invoice later?

Forum|Forum|8 months ago
November 7, 2025
1 reply
2 views

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QuickBooks Online

EvethC

QuickBooks Team

Hello there, Ian. You can record the prepayment to your supplier (vendor) as an Expense so that it can be allocated to the invoice once it's received.

Once the supplier provides the invoice, you can create a Bill and match the prepayment accordingly.

Here's how:

Go to + New and select Bill.
Fill out all necessary details for the invoice, including date, due date, amount, bank account information, and save it.
Make sure the supplier matches the one for whom you recorded the prepayment.
Click Save and close.

Once that's done, apply the Expense you previously recorded to the Bill:

Go to the Expenses menu.
Locate and click the prepayment transaction you recorded earlier.
Click the arrow in the upper-right corner of your screen.
Select the Bill from the supplier that matches the prepayment amount and click Add.
Review the details and click Save and Close.

Next, review the supplier's balance to confirm the payment has been correctly applied:

In the Expenses menu, go to the Suppliers tab.
Select your vendor and locate the Bill.
Ensure the Bill is reflected as paid.

Please let us know if you need any additional assistance. We're here to help!

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