Question

We pay vendors by ACH payments from our bank account. Some of the payments are initiated by us and some are initiated by our vendors. How can those be posted?

Forum|Forum|2 years ago
January 5, 2024
1 reply
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It seems the only selection in Bill pay is to pay with a check. How are the ACH payments entered in QBO?

QuickBooks Online

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Thanks for reaching out to the Community, OR Accountant. I appreciate your detailed information.

When setting up bank transfers with vendors, there's a few things you'll want to be aware of:

You can only set up bank transfers with a vendor through a private bank add.
Intuit will initiate a small test deposit of a penny into the vendor's account. This is done to verify their account can receive payments.
After manually adding a vendor's bank account, your earliest process date that can be chosen is 2 business days after the account was added. This is to ensure your test deposit is successful.
If the test deposit isn't successful and a bank account is invalidated, your payment will still process. It will go out as a check payment.
If a payment needs to be made immediately, schedule a check payment before adding the vendor's account.

When making a payment, a bill will be created and synced back to QuickBooks along with the payment initiated. You can code the necessary tracking categories required for your bill.

Here's how:

From the Dashboard screen, click Bill pay online widget.
Access your Make a payment tab.
Enter the payment information for your vendor.
Hit Choose delivery method.
Choose Bank transfer or Check. For bank transfers, if the vendor hasn't already been set up, enter their bank account details. For checks, specify a process date and edit vendor information if necessary.
Select Review and submit, then Submit payment.