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Mr Tangerine Man
Level 3

Utility type bills

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

Solved
Best answer June 09, 2023

Accepted Solutions
paul72
Level 8

Utility type bills

Hey @Mr Tangerine Man 

 

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.

View solution in original post

3 REPLIES 3
Ashleigh1
QuickBooks Team

Utility type bills

Hello Mr Tangerine Man, thanks for posting on the Community page,  we would advise you speak to an accountant on how best to enter this into your account.

paul72
Level 8

Utility type bills

Hey @Mr Tangerine Man 

 

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.

Mr Tangerine Man
Level 3

Utility type bills

Thank you!

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