How to manage bills and mark payment in the bank transactions.

Your presence here in the Community is highly appreciated, @tuksyautocentre. I would be delighted to guide you through the process of managing your bills and marking payments in your bank transactions within QuickBooks Online (QBO).

To start, if you have existing open bills recorded in QBO, you can match downloaded bill payments to those bills. By doing this, the system will recognize that the bills have been settled, effectively closing them or marking them as paid.

However, if you find you don't have any bills created in QBO, you will need to create a new bill first. Once the bill is set up, you can then match the downloaded payment to this newly created open bill. This ensures that your records are consistent and that all transactions are accounted for.

On the other hand, if the bills are already paid, then match the downloaded payment to the bill payment you previously recorded in QBO.

If you directly categorize or add the payment in the bank feeds, it will be added as a check or expense. However, please know that this will not close the open bills in your records. This approach is advisable only if you have not manually recorded any expense transactions in QBO, as it could lead to discrepancies in your financial records.

I'm here to support and assist you every step of the way. Feel free to post any questions or concerns about your payment processing, @tuksyautocentre. I will always be here to ensure everything is taken care of just for you.