Tag Archives: prepayment

Apply Inventory Prepayments to Bills

Here is a video showing how to create and apply an inventory prepayment:

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Create and then Apply Inventory Prepayments in QuickBooks Desktop

If you are having to submit pre-payments for inventory on order (and thus not received yet), then you will need to deduct these prepayments upon receipt of the inventory and corresponding vendor bill. First let’s create the prepayment: Create a new other current asset type of account called “Prepayments on Inventory” (or something like this)

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Deferred Income for Job Build

My client, Katie, currently owns and operates a small home remodeling business. Each month, her client sends to her a $60k check payment as an upfront or prepayment for materials & labor costs. Then Katie proceeds to purchase the necessary materials and labor to continue the project for her client. As Katie’s bookkeeper, I do

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