Please follow below steps to record vendor prepayment using credit card account.
- Create a holding account
o Go to Setup > Accounting > Manage G/L > Chart of Accounts > New
o In the Type field, select Other Current Asset
o If you use account numbers, enter a number in the Number field
o In the name field, enter Temporary Holding
o Click Save.
- Record the Prepayment using Credit Card
o Go to Transactions > Bank > Use Credit Card
o In the Payee field, select the vendor
o On the Expenses sub tab, in the Account column, select the Temporary Holding account
o In the Amount column, enter the prepayment amount
o Click Add
o Click Save
- Enter Vendor Credit.
o Go to Transactions > Purchases/Vendors > Enter Vendor Credits
o Select the vendor
o On the Expense sub tab, select the Temporary Holding account
o In the Amount column, enter the prepayment amount
o Click Add
o Click Save
NOTE: Steps above will allow you to pay the vendor in advance, will wash your holding account so the resulting balance is zero and will list an outstanding vendor credit on the vendor's account. When you receive the bill from the vendor, you can apply this credit to it.