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Which payment type should I select: Cheque or Expense, and what's the difference between each?
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Usually, Expense is used to enter a transaction that has been paid but not with a check (e.g., a debit card or credit card). At the top left (just to the right of the vendor box) you can choose your checking account, credit card account, etc. as the source. (In the desktop versions you would simply pay a bill or write a check and use, e.g., DC or EFT as the check number.)
Usually, Expense is used to enter a transaction that has been paid but not with a check (e.g., a debit card or credit card). At the top left (just to the right of the vendor box) you can choose your checking account, credit card account, etc. as the source. (In the desktop versions you would simply pay a bill or write a check and use, e.g., DC or EFT as the check number.)
You can do the same things with both, except print a cheque.
If i use credit or debit card or a checking account for a payment i will go for cheque ortherwise i will go for expense(such as cash payment on spot)..Am i right??
Thank you for joining, @Rayhan10.
When paying something via credit card, you can use expense. If you're paying something via EFT, you can still use expense. However, if you need to print a cheque, you can record the expense as a Cheque, instead of an Expense.
In general, Cheque and Expenses are for services or items paid on-the-spot. For services or items to be paid later, you'll need to use Bill.
Keep me posted if you have other questions or clarifications. I'm here to help. Have a good one.
Hi everyone, actually I have found a difference between the two for reporting purposes. On the balance sheet, when I write a transaction as an expense
for a liability, it shows up on the balance sheet using the cash form of reporting. If I use expense on that liability, it does not show up on the balance sheet for cash reporting. However, it does show up if I use accrual reporting. Why is this?
I appreciate you looping in the thread, @diana tyson.
When running the Balance Sheet, the reported data will differ depending on the accounting method used.
If you create an expense transaction, it'll show on the cash form reporting because it's already paid. For accrual, it'll show as an outstanding liability since no payment has been made yet.
I'll include this helpful reference for more details about the difference between cash and accrual: Choose between cash and accrual accounting methods in reports.
Let me know if you have other questions or concerns. I'm here if you need help.
I've got only 2 transaction types available in my Quickbooks bank feed
only Expence and Cheque. Is there any way to introduce more transaction types like
Transfer or Card payment?
Hi Basia, thanks for joining this thread - there's no way to add additional transaction types, however, you can change the 'Categorise' selection to 'Record as transfer' on the transaction in the for-review tab and you'll then be given the option to select a transfer account. :)
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