The article outlines the steps for recording prepayments for parts or services in QuickBooks Desktop.
When you order a part or a service from a vendor, the vendor may require you to pay a portion of the price before delivery. You have two options for entering the prepayments or deposits. Consult your accounting professional to know which option is best for you.
You can write a check to the vendor and record the it to your Accounts Payable (A/P) account, decreasing the balance until you are ready to enter the final bill.
You can write a check to the vendor and record the it to an Other Current Asset (OCA) account, increasing the balance until you are ready to pay the final bill.
You can run a report to view existing prepayments you have on your company file.