Solved

BILLD.com Entries

Forum|Forum|2 years ago
March 11, 2024
2 replies
0 views

I used BILLD.com to finance a material purchase. I sent BILLD.com my vendor invoices and BILLD.com paid my vendor. I paid BILLD.com weekly interest payments and at the end of 60 days, I made the final payment. What entries do I need to make to when BILLD.com pays the vendor? How do I account for bill payments when I didn't directly pay the vendor but paid BILLD.com?

QuickBooks Desktop

Best answer by Rainflurry

@semperfinci

Disregard the advice from @KayePe. It's nonsense and will mess up your books.

If you haven't already, set up an Other Current Liability account called "BILLD Payable". Enter bills from your vendor as you normally do. Then, create a Vendor Credit(s) for the amount of the bill(s) and assign the newly-created "BILLD Payable" liability account to the credits. Now, pay the bills with the credits.

At this point, you now have the expenses recorded from the bills and an offsetting amount in the BILLD Payable liability account since you owe them the balance. When you issue final payment to BILLD, write a check (or record an expense) and assign the principal portion to the BILLD Payable liability account and the interest portion to Interest Expense. That's it.

K

KayePe

Hello there, semper. Let me give you an option on how to record the process of your transactions inside QuickBooks Desktop (QBDT).

To properly document the payment made by Billd.com to your vendor, you can set up Billd.com as a vendor in your system. Once done, you can transfer the payment received from Billd.com to your original vendor through a temporary clearing account. It will allow you to keep track of the payment made by Billd.com and ensure that it's recorded in your system. After that, you can make a Journal entry for the transaction.

Select Make General Journal Entries in the Company menu.
Have Accounts Payable with the transferrable amount in the first line. Choose the vendor from whom the credit is coming from the Name column.
On the second line, debit the Clearing account created in the clearing account with the same amount.
Select Save & Close.

After that, apply the credit to the Journal Entry as an unpaid bill.

In the Vendors menu, select Pay Bills.
Choose the bill created by the Journal Entry. Note that it will appear without a due date.
Click Set Credits.
From the Credits tab, select the credit and choose Done.
Hit Pay Selected Bills.

If done, you can now create a Journal Entry to move the credit from the clearing account to the vendor.

Select Make General Journal Entries in the Company menu.
Debit the Accounts Payable with the transferrable amount. Select the vendor who will receive the credit in the Name column.
Credit the Clearing account with the same amount on the second line.
Click Save & Close.

To record your payment to Billd.com, you may reach your accountant to ensure that the process is correctly done. Your accountant can guide you in recording the transaction and advise you on any adjustments or corrections that may be required. They will also help you to choose the most suitable method for recording based on your specific accounting needs and preferences.

Moreover, you can visit this link for an additional article on reconciling an account inside QBDT in the future: Reconcile an account in QuickBooks Desktop.

Let us know if you have more questions about recording transactions using QBDT. I'm here to assist. Take care!

S

semperfinciAuthor

KayePe

Thank you for the information you provided me. I very much appreciate you taking time from your busy schedule to help. I have decided to use Rainflurry's solution.

RainflurryAnswer

@semperfinci

Disregard the advice from @KayePe. It's nonsense and will mess up your books.

If you haven't already, set up an Other Current Liability account called "BILLD Payable". Enter bills from your vendor as you normally do. Then, create a Vendor Credit(s) for the amount of the bill(s) and assign the newly-created "BILLD Payable" liability account to the credits. Now, pay the bills with the credits.

At this point, you now have the expenses recorded from the bills and an offsetting amount in the BILLD Payable liability account since you owe them the balance. When you issue final payment to BILLD, write a check (or record an expense) and assign the principal portion to the BILLD Payable liability account and the interest portion to Interest Expense. That's it.

S

semperfinciAuthor

Amazing! What a simple solution that even a QBs "greenie" can understand and follow it. Will the same set-up work for invoice financing (factoring) such as Bill.com? I invoice my customers and Bill.com, deposits the invoice amount minus a small fee. Then when my customer pays Bill.com, they keep the entire amount.

I very much appreciate you taking valuable time to help me. Thank you.