QB Issue Resolution:

Prepaid inventory
Answer ID: 6401

Many times when you purchase inventory from a vendor you will not physically receive the inventory for a period of time. How do you show a payment to your vendor in QuickBooks Online without increasing your quantity on hand for the inventory until you physically receive the item?

Here’s how:

1. Choose Plus Sign Icon > Purchase Order.
2. Fill in the appropriate fields selecting the product/service you are purchasing in the Itemize by Product/Service section.
3. Click Save.

Next, pay your vendor:

1. Choose Plus Sign Icon > Check.
2. Select the vendor; in the Itemize by Account section choose an expense account such as Prepaid Inventory and enter the amount of your payment.
3. Click Save.

When the inventory arrives:

1. Choose Plus Sign Icon > Bill and select the vendor for whom you created the purchase order.
2. When you select the vendor, any open purchase orders for that vendor will appear along the right side.
3. Locate the purchase order you created and click Add Purchase Order.
4. Click Save.

Locate the original check payment made to this vendor, then:

1. In the Check screen, change the Account to Accounts Payable.
2. Click Save.

The final step is to show the bill you created for your vendor as paid.

To do this:

1. Choose Plus Sign Icon > Check.
2. Select the vendor from the drop-down list.
2. In the Credits section, click to select the payment.
3. In the Bill Payment Information section, select the bill to match to the payment.
4. Ensure that the Amount field at the top, under the Date, is blank.
5. Click Save.

Details
Answer ID 6401
Products QuickBooks Online Plus (H)
Categories Using This Product
Date Created 05/08/2014 11:20 AM
Date Updated 05/08/2014 11:20 AM
Allow Crawling? Yes

Resolution for Issue 'Prepaid inventory.' available: Yes (Solved).
Source: Intuit Community forum.

Prepaid inventory.: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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