Recording Prepayments For Inventory Purchases

  1. Set up a G/L account called "Prepaid Inventory."  The type of account should be "Bank."
  2. When the product is ordered enter a Purchase Order in QB Point of Sale.
  3. In QB Financial use the "Write Checks" or "Enter Credit Card Charges" window to record the payment.  Code to Prepaid Inventory.
  4. When the product is received, convert the PO to a Receiving Voucher in QBPOS.  Make sure to add the Bill Number on the voucher.  This will create a bill to be paid on the next Financial Exchange.
  5. In QB Financial go to the Pay Bills window and pay the bill using the new "Prepaid Inventory" bank account.  Once the bill is paid the account balance of the "Prepaid Inventory" bank account should be zero.