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HOW TO HANDLE PREPAID INVENTORY IN QUICKBOOKS

As a QuickBooks expert, we frequently need to make sense of work processes for surprising circumstances including stock, including how to deal with prepaid stock in QuickBooks. Clients that are new to the business may need to prepay for stock they have not gotten. It’s imperative to deal with the work process so the stock close by report and also the benefit and misfortune reports are exact.

Prepaid Inventory in QuickBooks

With the end goal to track these prepayments, you have to make a record called “Prepaid Vendors” — this would be a present resource account. When you compose a check for the prepayments, you will make a check to the merchant and code this to “Prepaid Vendors.”

  • At that point, you will go into Vendor>Enter Bill. Make a Bill Credit (inverse of a bill) to the merchant for the indistinguishable sum from your check. You will utilize the record, “Prepaid Vendors.”
  • In the event that this is done accurately, your “Prepaid Vendors” record will now be – 0-.
  • Prepaid Inventory in QuickBooks
  • Likewise, your Open Accounts Payable will have a credit balance on it.
  • Prepaid Inventory in QuickBooks
  • Presently your installment is properly reflected. Ordinarily, the stock is requested with the prepayment, and there will be a period slips by before the stock is gotten.
  • The stock is gotten, and the bill should be entered. Snap Vendor>Enter Bill.
  • Prepaid Inventory in QuickBooks
  • After this stock is gotten, we have to apply our prepayment.
  • Go to Vendor>Pay Bills. You can channel by which seller you are working with. Next, select the charge you need to apply the credit towards. Press the “set credits” catch for the screen so you can choose the right prepayment.
  • Prepaid Inventory in QuickBooks
  • After you select the right prepayment passage, click done.
  • Prepaid Inventory in QuickBooks
  • At long last, click Pay Selected Bills.
  • Prepaid Inventory in QuickBooks

When everything is connected legitimately, your records payable will resemble this:

Prepaid Inventory in QuickBooks

Also, your stock will resemble this:

Prepaid Inventory in QuickBooks

These precedents were shown in QuickBooks Desktop release as this is the variant we prescribe for the following the stock. You can keep on adding to a greater degree a prepayment to your merchant and keep a running parity of accessible credit to apply to your buys. In this precedent, the measure of the prepayment was an alternate sum from the stock bought. In the event that they were similar sums, at that point, your records payable would be zero.

Bottom line

In the event that you cherish QuickBooks and need to take in more about the favorable circumstances, meet us at QuickBooks Desktop Support Number +1-855-666-1972.

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