How to Pay for the Items when I order them

To Pay for the Items when I order them

• First of all, you have to create a purchase order for the items.

• And then you have to create another current asset account, and name it "Prepaid inventory" or a similar name.

• Then write a check or enter a credit card charge to pay your vendor for these items.

• When QuickBooks tells you 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 created. Then click Save & New to record the check or credit card transaction.