I just started setting up bills in the system. If I would like to enter old bills and attach prior checks. How would I do that?
a bill is usually only used if you are going to wait to pay it, other wise just enter the check and the expense account the bill would have used. Just back date the entry, QB does not care what date sequence either, last week, then this week, then last month, QB takes it all and sorts it
the other thing to be aware of is that of you presently have starting balances in QB then any historical entry you make will affect current balances.
If you are an Accrual Basis entity, then the dates of the bills that were not also paid at that same date, means you would enter them as Bills, and later use Pay Bills to generate the Bill Payment Checks, for your banking entries.
For a Cash Basis entity, the date of the check is the date of payment, so you don't need Bills, after the fact, for catching up the bookkeeping.
The same is true for Sales: Invoice (accrual) or Sales Receipt (cash).
Doing that work now, is no different than is you had done it then. It's still just Data Entry, always putting in the date of that transaction and all details that apply.
Don't reconcile any accounts currently, if the historic info you intend to enter isn't already there. The data has to exist in sequence, not matter if it was entered in sequence. So, you can work in Nov 2018 while entering Jan 2018, too.
You need to establish a hard cut-off date for when your company records in QB will begin. Prior closed (paid) vendor bills will usually not be entered. But bills that were open (unpaid) on the start date can be entered if you want. Setting up opening balance details for uncleared cheques, Customer Invoices and Vendor Bills is a bit tricky - you should read all the QB help and tutroials on that first.
Thank you for your help. I just need some clarification on Vendor bill and Bill Pay.
When I process a bill, a credit goes to my admin acct and a debit to my expense acct.
Then I process a check thru bill pay and I get a credit to my bank and a debit to admin.
Is this in our set up or am I processing this wrong.
Thanks for your help. I think I have a set up problem. When I process a bill, the transaction are I have a debit to my expense acct and a credit to my admin acct.
Then I pay the bill and it creates a credit to my back and a debit to my admin acct.
Any thoughts on this.
Hey there, MJT.
I'm by no means an accounting professional, but I do have some insight to provide regarding your setup.
Just to clarify, when you say Admin account, are you referring to the Accounts Payable account? If so, then I can see that your setup is correct. To verify this, you can check the Transaction Journal for both your bill and it's payment. I'm attaching these screenshots to show you how it would look like.
Bill Transaction Journal
Bill Payment Transaction Journal
Let me know if this isn't quite what you're looking for, I want to make sure this is taken care of. Have a great day!