How to Enter Multiple Payments on a Single Subcontractor Invoice

Here are the steps for applying partial payments to a single purchase order or invoice from a subcontractor or vendor. 

1. Create a purchase order.

The first step is to create a purchase order if you haven't already. Go to the Add (+) icon in the top right hand corner and select Purchase Order under the Vendors category. If an error message appears you may need to turn on the purchase order function. To fix this, go to settings > expenses > select 'use purchase orders'. Click done. 

Now onto creating the purchase order. Click on the Add (+) button on the top right corner of the screen and select Purchase Order again. This will bring up a new purchase order where you can enter the invoice details that were sent to you by the subcontractor. Enter all pertinent information including the TOTAL amount due on the invoice. Click save and close. Here's an example. 

2. Create and pay bill. 

Click on Vendors on the left side of you screen. A list will appear with all open purchase orders from your subcontractors. Find the one you are making a payment on and click 'create a bill' on the right side of the item line. 

Next, you need apply the correct purchase order to the bill. All open purchase orders will appear on the right side. Find the purchase order you are wanting to make a payment on and click 'add'. Now the bill and the vendor account are linked. 

THIS is the important step - this is where you make the partial payment. Scroll down to where it says Item Details and change the 'Rate' amount to your partial payment amount. You can see below that I changed the 'Rate' amount to $10,000. Instead of paying the full amount due of $20,000, I am only making a first payment of $10,000. Click save and close.

3. Check the A/P by Vendor report. 

To make sure everything worked smoothly, click on Reports on the left side of your screen. Then select the 'All Reports' tab. One of the reports near the top should be titled Vendor Balance Summary. Select 'Run'. This is where you will be able to see your open balances owed to your subcontractors or vendors. You can see that mine says $10,000 which is correct. 

You can also run the Vendor Detail Summary report if you'd like to see your open purchase order amounts in greater detail. 

There you go! That's how you apply partial payments to a single purchase order from a subcontractor. The QuickBooks Desktop process is very similar and I'd be happy to show anyone who needs some help! 

Feel free to contact me if you have any questions via