Hi all.
Still getting to grips in my first few weeks of QBO
I'm wondering how best to account for utility type expenditure through accounts payable in QBO please.
The type of arrangement where monthly fixed direct debits are paid to the supplier who then sends a VAT invoice quarterly for example.
The supplier account could therefore be in debit or credit at any point in time.
Thank you
Dave
This is a pretty standard Payment on Account situation. There are a few posts on here which might help but the basics are:
(1) Enter the monthly payments as Cheques in QBO (I use Debit in place of the Cheque Number), use the Supplier Name, Account/Category = Accounts Payable with NoVAT.
If you use Bank Account Matching, use the same settings. These cheques will show up on the Supplier Register as Credits.
(2) Enter the quarterly invoices as Bills in QBO - again, use the Supplier Name but Account/Category = Utilities (or whatever) with VAT Code = S20 or R5 as appropriate.
The only thing left to do is to clear down the payments against the bills. This is just to keep things neat & to stop QBO from reporting unpaid/overdue bills.
(3) Use Pay Bills to allocate the Payments (Credits) against the Bills.
Hope this helps.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.