Expenses by Vendor Summary Reports is not considering the Purchase transactions? Is there any reason for that?

Welcome to the Community, @aamir1-sheikh1. I can explain to you the reason why the Expenses by Vendor Summary report isn't considering the Purchased transactions. It is because this report will only show the company's total expenditures to vendors. It also reflects payments coded to expense accounts and not actual vendor totals. See this article: Run a report with vendor totals for more information. 

We do have other reports in QuickBooks that generates a list of all purchases you've made and subtotaled per vendor. You can run the Purchases by Vendor Summary instead if you want to see this kind of detail.  

Additionally, another report to consider is the Transactions List by Date report if you want to see all the transactions for each vendor. It will also show all the payments made for the year once the proper customization is made. 

For your reference, I'm sharing with you this article to help you customize your reports in QuickBooks Online. It'll help you learn about how to use filters so it will only show the specific details you want to view in the report.

Feel free to visit again if you have other concerns about reports. We're always delighted to help you some more.  

Thanks Katherine. I guess, then I am not very clear on what's the difference between expenditures and purchases. I thought there is a 1 to 1 co-relation between the two. For every purchase you would have to either pay a bill or expense it. 

I don't particularly understand this point of yours - It also reflects payments coded to expense accounts and not actual vendor totals. In the sandbox environment the two vendors where we can't reconcile is Hicks hardware and Norton Lumber. Money  is owed or paid to these vendors however some of the transactions are coded as purchase against which bills are generated and paid. So these transactions should show in the vendor expense report, am i wrong here. 

Welcome and thanks for joining this thread, @nidhijain24. I'd be happy to clarify the difference between expenditures and purchases. 

In QuickBooks, any purchases that your business bought that are meant for resale are coded to the Purchase account. However, those items that your business bought for consumption purposes including the services you've received such as from (electricity, water, telephone, etc.) are charged to the Expense account.  

Yes, you're right. For every purchase, you would have to either pay a bill or create an expense because that's how you record all types of payments in QuickBooks. However, you'll have to categorize them accordingly so it will post to the proper account. 

Hence, those transactions you've mentioned from the two vendors (Hicks hardware and Norton Lumber) that are coded as purchases shouldn't show in the Expenses by Vendor Summary report.

You might want to run the Purchases by Vendor Summary report to show the company's total purchases per vendor. I'd also suggest you seek advice from your accountant for the proper posting of your transactions so you'll have an accurate reporting of your purchases and expenses. 

To learn more about when to enter bills, checks, and expenses, read through this article: What is the difference between bills, checks, and expenses?.

Just in case, you can also pay your bills electronically. Refer to this article for more information: Set up a bank transfer to a vendor. 

Let me know if you have additional questions, @nidhijain24. I'm always around to help.