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emilypearen
October 23, 2020
Question

Supplier charges and reconciliation

  • October 23, 2020
  • 1 reply
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I have a supplier that charges us random amounts for multiple invoices. 

For example we will have expenses for $100, $200, and $50. Our supplier charged our card $310 in September and then charged the remaining $40 with new invoices in October. 

I am doing a reconciliation and I have a combined total of $310 on our bank statement but $350 worth of expenses for that month. So I cannot get the reconciliation numbers to match up. 

Should I not be entering these as expenses and rather as Bills? 

I have just taken over doing this for my brothers company so I am not sure how to fix this all. 

 

I apologize if I don't use the correct terminology, I do not have any accounting training. 

1 reply

PatriciaT
PatriciaT
October 23, 2020

Hi emilypearen,

 

Welcome to the community! Properly recording your transactions is key to ensure accuracy across your books and avoid discrepancies during reconciliations. QuickBooks Online helps you enter various types of transactions in your account so you can stay on top of your bookkeeping. I'll be happy to point you in the right direction with this.

 

There are various ways to manage your books and business in QuickBooks Online. The approach you end up taking depends on how you and your accountant prefer to handle your account. When it comes to bills and expenses, something important to keep in mind is their differences and situations that apply to them. You can learn more about that in this article: What is the difference between bills, cheques, and expenses?

 

If you're not sure of which type of transaction to choose for your supplier charges, I strongly recommend reaching out to your accountant. Accountants are great resources to make sure everything is lining up correctly in your books and are also incredible tools during the reconciliation process. You can invite your accountant as a user in your account by going to the Accountant menu and entering the appropriate email before confirming the invite. Alternatively, you can click on Find a pro to help to access our list of accountants.

 

Here are other articles that could also be useful to you.

I hope this helps! Have a great weekend

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