QuickBooks Online: Entering/Paying Vendor Bills (Accounts Payable)

Introduction

This tutorial provides a step-by-step guide for entering and paying vendor bills in QuickBooks Online, as demonstrated in Hector Garcia's video. Understanding how to manage accounts payable effectively is crucial for maintaining accurate financial records and ensuring timely payments to vendors.

Step 1: Creating Bills

1. Navigate to the Bills Section

   • Log in to QuickBooks Online.
   • Click on the “+ New” button located on the left side of the dashboard.
   • Select “Bill” under the Vendors section.

2. Enter Vendor Information

   • Choose the vendor from the dropdown list. If the vendor is not listed, add a new vendor by clicking on “Add new.”
   • Fill in the necessary details such as the bill date, due date, and bill number.

3. Input Bill Details

   • In the “Category” section, select the appropriate expense account.
   • Enter the amount and description for the bill.
   • If applicable, add any items by selecting them from the “Item” section.

4. Save the Bill

   • After entering all the details, click “Save and close” or “Save and new” to continue entering more bills.

Step 2: Paying Bills

1. Access the Pay Bills Feature

   • Click on the “+ New” button again.
   • Select “Pay Bills” under the Vendors section.

2. Select Bills to Pay

   • In the Pay Bills window, you will see a list of unpaid bills.
   • Check the boxes next to the bills you want to pay.

3. Choose Payment Method

   • Select the payment account (e.g., bank account) from which the payment will be made.
   • Enter the payment date and the amount to be paid.

4. Complete the Payment

   • Click on “Save and close” to finalize the payment.

Step 3: Entering Vendor Credits

1. Navigate to Vendor Credit

   • Click on the “+ New” button.
   • Select “Vendor Credit” under the Vendors section.

2. Input Vendor Credit Details

   • Choose the vendor from the dropdown list.
   • Fill in the credit amount and relevant details, similar to entering a bill.
   • Save the vendor credit.

Step 4: Applying Credits to Open Bills

1. Access Open Bills

   • Go back to the “Pay Bills” section.
   • You will see available credits listed alongside unpaid bills.

2. Apply Credits

   • Check the box next to the bill you want to pay.
   • In the credits section, apply the appropriate credit amount to offset the bill.

3. Finalize Payment

   • Complete the payment process as described in Step 2.

Step 5: Making Journal Entries or Adjustments

1. Create a Journal Entry

   • Click on the “+ New” button and select “Journal Entry.”
   • Input the necessary details for the adjustment, including accounts and amounts.

2. Save the Journal Entry

   • Review the entry for accuracy and click “Save and close.”

Step 6: Matching Downloaded Bank Transactions

1. Navigate to Banking

   • Click on “Banking” on the left panel.

2. Match Transactions

   • Review the downloaded transactions.
   • Click on the transaction that matches the bill and select “Match” to associate it with the bill.

Step 7: Generating Unpaid Bills Report

1. Access Reports

   • Click on “Reports” from the left menu.
   • Search for “Unpaid Bills” report in the search bar.

2. View and Customize Report

   • Review the report for any outstanding bills.
   • Customize the report as necessary to fit your needs.

Step 8: Using Items in Bills and Making Billable Expenses

1. Add Items to Bills

   • When creating a bill, navigate to the “Item” section and select items to add them to the bill.

2. Marking Billable Expenses

   • Ensure to check the “Billable” box for any expenses that can be billed to customers.

Step 9: Creating Purchase Orders

1. Create a Purchase Order

   • Click on the “+ New” button.
   • Select “Purchase Order” under the Vendors section.
   • Fill in vendor details and items as necessary.

2. Save the Purchase Order

   • Click “Save and close” to finalize the purchase order.

Conclusion

In this guide, we've covered the essential steps for entering and paying vendor bills in QuickBooks Online, along with managing vendor credits, journal entries, and purchase orders. By following these steps, you can maintain accurate accounts payable records and ensure timely payments to your vendors. For further learning, consider exploring related videos or tutorials on QuickBooks features.