Liability Account for Bills

brettrush1 · ‎November 10, 2023

Is there a way to select an AP sub-account to assign a bill to when it is entered? Or adjust the credit afterwards?

I have different sub-accounts under AP for different types of payables but when I enter a bill I don't get an option to credit any account, QB just automatically assigns it to general AP. The only account selection option is for the debit (expense) account.

I have tried changing the credit account afterward in the transaction drilldown journal but QB won't let me change the account.

I guess the only way around this is to enter bills as journal entries. But unfortunately tags aren't available in individual journal entries, and I use them on bills frequently.

Is there a workaround here?

Angelyn_T · ‎November 10, 2023

I value your interest in assigning your bill to an AP sub-account, Brett. Allow me to share further insights regarding the bill feature in QuickBooks Online (QBO).

When you record a bill, the system automatically posts the transaction to the default AP account until you settle your payment. I understand the importance of using sub-accounts to categorize your payables accordingly. Although it's possible to accomplish this through journal entries, adding tags is only available for invoices, expenses, and bills.

While this is the QuickBooks option, I recommend sending a feature request directly to our product developers. It'll allow them to assess the possibility of incorporating your suggestion in the future.

To start:

Go to the Gear icon, then Feedback.
Enter your comments or product suggestions.
Tap Next to submit.

Once done, your valuable suggestion goes to our Product Development team to help improve your QBO experience. You can track feature requests through the QuickBooks Online Feature Requests website.

Also, I'm adding these materials for more hints while working with your bill entries in our system: Enter and manage bills and bill payments in QuickBooks Online. The same reference will guide you in recording payments towards your payables.

Please extend your patience as we work towards making QuickBooks even better for you. If you have follow-up questions about your vendor bills, let me know by leaving a comment below. I'm just a few clicks away to help you again. Have a good one!

View solution in original post

Angelyn_T · ‎November 10, 2023

I value your interest in assigning your bill to an AP sub-account, Brett. Allow me to share further insights regarding the bill feature in QuickBooks Online (QBO).

When you record a bill, the system automatically posts the transaction to the default AP account until you settle your payment. I understand the importance of using sub-accounts to categorize your payables accordingly. Although it's possible to accomplish this through journal entries, adding tags is only available for invoices, expenses, and bills.

While this is the QuickBooks option, I recommend sending a feature request directly to our product developers. It'll allow them to assess the possibility of incorporating your suggestion in the future.

To start:

Go to the Gear icon, then Feedback.
Enter your comments or product suggestions.
Tap Next to submit.

Once done, your valuable suggestion goes to our Product Development team to help improve your QBO experience. You can track feature requests through the QuickBooks Online Feature Requests website.

Also, I'm adding these materials for more hints while working with your bill entries in our system: Enter and manage bills and bill payments in QuickBooks Online. The same reference will guide you in recording payments towards your payables.

Please extend your patience as we work towards making QuickBooks even better for you. If you have follow-up questions about your vendor bills, let me know by leaving a comment below. I'm just a few clicks away to help you again. Have a good one!

Rainflurry · ‎November 11, 2023

@brettrush1

"Is there a workaround here?"

Nope. This is a major disadvantage of QB Online vs. Desktop. In Desktop, you can select any A/P (or A/R for invoices) subaccount that you want the bill assigned to. In QB Online, you can enter the bill as a journal entry and pay it. But, you still need to apply the payment to the journal entry (using Pay bills) or they will both show on your A/P aging report.

brettrush1 · ‎November 11, 2023

Thanks @Angelyn_T. Is it possible to assign balance sheet accounts to bills and invoices in QBO Advanced or is that not available in any QBO version?

MelroseV · ‎November 11, 2023

Hi there, @brettrush1.

I assure you I can help you with your balance sheet. Yes, it's possible that you can assign balance sheet accounts to your bills and invoices. For the invoice, we need to create a service item and allocate the balance sheet account in the Income account drop-down. Here's how:

For Bills

Go to + New, then select Bill.
Fill out the information needed.
Under your Category details, you can choose a balance sheet account.
Click Save.

For Invoice

Go to + New, then select Invoice.
Fill out the information needed.
Under Product/Service, click the drop-down arrow and then select + Add new.
Select the Service.
From the Income account drop-down, pick the balance sheet account.
Click Save.

Then, you can run a Balance sheet detail report using the accounting method to show the bills and invoices.

If your customer wants to pay for their invoice, you can record their invoice payments.

You can track your bill payment if you want to pay your vendors.

You can reply to this thread if you have other questions besides the balance sheet. I'll be around to lend a hand. Stay safe!

brettrush1 · ‎November 11, 2023

Every bill or invoice will have a corresponding balance sheet entry to the income statement entry. How can you work for Quickbooks without having a basic understanding of accounting?

Rainflurry · ‎November 12, 2023

@brettrush1

"Is it possible to assign balance sheet accounts to bills and invoices in QBO Advanced or is that not available in any QBO version?"

It's the same on all QB versions. Just select the BS account under 'Category' on bills. For invoices, however, you need to create a Product/Service mapped to a BS account since you can't assign a GL account directly to an invoice. On an invoice, positive amounts post as credits, and negative amounts post as debits.

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Liability Account for Bills