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kellymaloney
Level 1

Invoice payment methods

We own a mobile automotive/diesel repair shop and routinely perform maintenance and repairs on our company owned vehicles. We need to track these expenses as we have to pay for parts and supplies as well as our employees time. How do I "pay" these invoices in QBO without physical payment being made?

Solved
Best answer January 07, 2021

Accepted Solutions
MarsStephanieL
QuickBooks Team

Invoice payment methods

Hi there, @kellymaloney.

 

Do you need to send yourself an invoice for the work done because the business is a vehicle repair business? If you do need to have that invoice then we would say that creating a journal entry to close the invoice and expense would be the right option however we would advice confirming this with an accountant  to ensure your books are accurate.

 

If not you could delete that invoice since it's not a sale. Then, proceed on creating an expense transaction to track the costs you've paid for the maintenance or repairs of your vehicle. I'd be happy to show you how:

 

  1. Go to the + New button and select Expense.
  2. Input the name of the vendor you'd like to pay.
  3. Fill in the important fields.
  4. Select Save and close or Save and send if you want to send this copy to your vendor.

I've added a sample screenshot to see how it looks like:

 

 

You may consider checking this article to know more about this process: Enter and manage expenses in QuickBooks Online.

 

You are always welcome to comment below if you need further assistance or if you have other questions. I'd be happy to answer them. Take care.

View solution in original post

3 REPLIES 3
Ashleigh1
QuickBooks Team

Invoice payment methods

Hello Kellymaloney, 

 

Welcome to the Community page, 

 

Can we ask why are you wanting to pay the bill before it has actually made a payment on it? 

 

Is it for VAT purposes? 

 

If your paying a supplier invoice you could do a bill payment on the supplier bill and then just match it up later on the banking page. 

 

Unless it's payment on account which I assume it is not? 

kellymaloney
Level 1

Invoice payment methods

These invoices have been reflecting as overdue and showing on our accounts receivable aging report for some time. We are not going to pay ourselves for work that we perform on our company owned vehicles. I think I may have figured out a work around by creating a journal entry crediting our company in accounts receivable and debiting our "Car & Truck" expense account. This has allowed me to "pay" the invoices. I am hoping that it won't create a problem using an expense account since there will never be any physical payment received for the work performed.

MarsStephanieL
QuickBooks Team

Invoice payment methods

Hi there, @kellymaloney.

 

Do you need to send yourself an invoice for the work done because the business is a vehicle repair business? If you do need to have that invoice then we would say that creating a journal entry to close the invoice and expense would be the right option however we would advice confirming this with an accountant  to ensure your books are accurate.

 

If not you could delete that invoice since it's not a sale. Then, proceed on creating an expense transaction to track the costs you've paid for the maintenance or repairs of your vehicle. I'd be happy to show you how:

 

  1. Go to the + New button and select Expense.
  2. Input the name of the vendor you'd like to pay.
  3. Fill in the important fields.
  4. Select Save and close or Save and send if you want to send this copy to your vendor.

I've added a sample screenshot to see how it looks like:

 

 

You may consider checking this article to know more about this process: Enter and manage expenses in QuickBooks Online.

 

You are always welcome to comment below if you need further assistance or if you have other questions. I'd be happy to answer them. Take care.

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