To do this task
Create a purchase order for the items.
Create another current asset account.
Name the account "Prepaid inventory" or a similar
Enter charges for the items by:
Writing a check
Entering a credit card charge
Each credit card has its own register that lists all the charges and credits
you've recorded and the payments you've made. You can enter new charges
and payments directly in the register.
Open the register for the credit card account you want to
Click in the blank entry at the end of the register.
If you want the date to be other than today's date, change the date in
the Date field.
Press Tab and enter the transaction number in the Ref field.
In the Vendor field, enter the name of the
vendor you purchased the goods or services from.
(Charges only) In the Charge column, enter the amount of the charge.
(Payments only) In the Payment column, enter the amount you paid on the
credit card bill.
Enter the name of the account you use to track this type of expense. If you
need to distribute the charge to multiple accounts or assign it to a
customer:job or class, click Splits. See How
to enter split detail.
(Optional) In the Memo field, enter a note about the transaction.
The memo appears on all reports that include the transaction.
When QuickBooks indicates that you have an open purchase order
for the vendor, do not select the purchase order.
On the Expenses tab of the check or credit card charge, click
the Account field. Choose the other current asset account that you
Save the check or credit card transaction.
Find the check or credit card charge for the
On the Expenses tab, select the line that contains your other
current asset account.
Go to the Edit menu and click Delete Line.
Click the Items tab.
Click Select PO.
Click the purchase order that contains the items you paid for
and then click OK.
If necessary, record additional expenses (such as shipping) on a
new credit card charge or check.
Don't add additional expenses to the existing credit card charge or check.
Save the transaction.