How to Apply Advance Payment to a Bill in QuickBooks

In QuickBooks an advanced payment was entered. Meaning the bill did not come in yet but we wanted to send a check early. Once we later received the bill we paid the difference. It still shows an unpaid balance and stays in my unpaid bills section. How can I apply the early payment to the bill so that I may no longer appear outstanding in the program? Please help!
Change the account used on the check your entered for the advanced payment to your Accounts Payable account. Then go to Vendors > Pay Bills, select the bill and choose the Select Credits button.

Get free QuickBooks support and training!
LinkedIn   Google+   FaceBook

This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman

Ruth is the an Intuit Premier Reseller that offers great deals on QuickBooks POS and QuickBooks Enterprise. She has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

Visit our webstore for great deals on QuickBooks and QuickBooks POS!

2 Responses to How to Apply Advance Payment to a Bill in QuickBooks

  • i paid advance payment to my vendor by credit card. Now i have received invoice and want to pay balance amount. i cannot use this amount. will you please guide me

    • Hi Habibulla,

      First, create a current asset account called something like “vendor deposits”. Then open the credit card charge for the deposit and change the Account to the new vendor deposit account. Then create the new bill or check, enter the items you receive don the Items tab and the vendor deposit account with a negative amount on the Expenses tab. This will reduce the bll or check down to the remaining amount owed.