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rolandlw
June 13, 2020
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Vendor bills and payment

  • June 13, 2020
  • 1 reply
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Hello, 

I'm quite new to Quickbooks and starting to use it, trying to do things the right way.

I'm stuck here when it comes to payments for Vendor bills:

 

- I create Vendor Bills each time a vendor send us an invoice (we buy inventory from them).

- we pay these bills directly from our bank, usually in two payments, and our bank is connected to Quickbooks so I can see the checking accounts

 

I am trying to mark the vendor bills as partly paid, and eventually fully paid once we do the final payment, by associating different payment from the checking accounts, but I can't find the right operations that need to be done. Can someone help and show me the right way to do this?

Best answer by LieraMarie_A

Welcome to the Community, @rolandlw.

 

When entering vendor payments in QuickBooks Online (QBO), you have the option to pay them using the Pay bills feature. I'll guide you how.

 

  1. Select +New.
  2. Choose Pay bills.
  3. Select your payment account.
  4. Modify the date.
  5. In the Payment column, enter the payment amount.
  6. Select Save and close.

 

Once you fully paid the bill, this will automatically mark as PAID.

Also,  QBO will automatically download your transaction since your bank is already connected in the program. You just need to categorize them to make sure that they're recorded to the correct accounts.

 

You can run the Transaction List by Vendor to show you all the transactions for each vendor. You can also add the Open balance and A/P paid columns. Doing so helps you see the remaining balance and know the payment status.

 

Here's how:

  1. Go to Reports.
  2. In the Find report by name field, type in "Transaction List by Vendor."
  3. Click Customize.
  4. Change the reporting period.
  5. In the Rows/Columns section, click Change columns.
  6. Select Open Balance and A/P paid.
  7. Click Run report.

 

To learn more about navigating your QBO account, check this article: Getting started with QuickBooks Online.

 

If you need anything else, the Community is the place to go. Have a great day.

1 reply

LieraMarie_A
LieraMarie_AAnswer
June 13, 2020

Welcome to the Community, @rolandlw.

 

When entering vendor payments in QuickBooks Online (QBO), you have the option to pay them using the Pay bills feature. I'll guide you how.

 

  1. Select +New.
  2. Choose Pay bills.
  3. Select your payment account.
  4. Modify the date.
  5. In the Payment column, enter the payment amount.
  6. Select Save and close.

 

Once you fully paid the bill, this will automatically mark as PAID.

Also,  QBO will automatically download your transaction since your bank is already connected in the program. You just need to categorize them to make sure that they're recorded to the correct accounts.

 

You can run the Transaction List by Vendor to show you all the transactions for each vendor. You can also add the Open balance and A/P paid columns. Doing so helps you see the remaining balance and know the payment status.

 

Here's how:

  1. Go to Reports.
  2. In the Find report by name field, type in "Transaction List by Vendor."
  3. Click Customize.
  4. Change the reporting period.
  5. In the Rows/Columns section, click Change columns.
  6. Select Open Balance and A/P paid.
  7. Click Run report.

 

To learn more about navigating your QBO account, check this article: Getting started with QuickBooks Online.

 

If you need anything else, the Community is the place to go. Have a great day.

R
rolandlwAuthor
June 13, 2020

Thank you very much, this is helping a lot. I have an additional question, hope you can still help.
So, I marked the bill as paid, entering the amount and this went well. The system then wanted me to print checks but I cancelled, because I don't need this.
After, I went to my bank account list of transaction, and I moved the transaction regarding this payment to "categorized", assigning it to "Transfer: Inventory asset", knowing that I was buying stock from this vendor. Is that right?

Finally, do I need or can I associate this specific transaction to the specific vendor? May be, to do so, I should actually create an account for each vendor in the charter of account? I am basically trying to know how to associate each bank transaction to a specific bill...

 

Thank you in advance for your help,

Roland

JenoP
JenoP
June 13, 2020

Joining the thread to help with your question about vendor payments, Roland.

 

QuickBooks will ask you the name of the payee when categorizing the downloaded bill payments in the Online Banking. That will essentially allow you to associate each transaction to specific vendors, so you don't have to create a separate account in your COA.  

 

Also, select the Find match button instead of Transfer. Then, look for the existing bill or bill payment so you can attach the downloaded transaction to them.

 

You normally use the Record as transfer function if you're moving a transaction from one account to another. Here's an article that talks about this function: Transfer funds between accounts. 

 

Please add another reply below if you need anything else. 

 

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