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Welcome to In The Know! Learn about the most exciting innovations across the QuickBooks Online ecosystem. Subscribe to make sure you don't miss a beat as fresh episodes come out each week. This is a special episode in which ProAdvisor trainer Brittany Brown will lead you through an excerpt of Level 2 Content and more specifically tracking prepayments made to vendors. 0:00 - Tracking prepayments made to vendors 1:10 - Establishing a well defined workflow for accurate bookkeeping 2:20 - Accounts payable method 2:52 - Negative liabilities/assets & negative assets/liabilities 3:15 - Recording prepayment suggestions 3:59 - Alternative method 4:52 - Other current assets method 6:06 - Choosing the right method & what to consider 6:52 - In general, the accounts payable option may be acceptable if client uses reports for management purposes only 8:17 - Demo in QuickBooks, how to turn on the ‘Automatically apply credits’ setting 8:58 - Step-by-step guide in QuickBooks 10:12 - Settings suggestion (automatically apply credits) 10:46 - Making a prepayment 11:23 - Changing category to ‘Accounts Payable’ and why 12:18 - Checking unpaid bills report 13:21 - Closing loop the so books reflect accurately 16:15 - Viewing & checking unpaid bills report 17:12 - Demo in QuickBooks, using the other current assets method, recording to a vendor prepayment account 17:44 - First step, creating a vendor prepayment account if needed 18:28 - Creating check for vendor prepayment order 19:30 - Making sure check went from bank to vendor prepayment asset account 20:47 - What to do with bill in placed in vendor prepayment asset account 23:09 - Reconciling accounts & running reports 24:18 - Walkthrough of running a filtered report 25:48 - How to get reports to show only open prepayments 27:09 - Outro Visit the In The Know Hub: https://intuit.me/intheknow Subscribe to our YouTube channel: http://intuit.me/3bOj0M2 Visit QuickBooks.com: http://intuit.me/QBO #QuickBooks