Bills to match check in bank feed

It's nice to welcome a new Community member, rbutz. I’d like to clarify why the bill is only posted to the Accounts Payable account and implement a fix to ensure it's posted to the correct expense account. This adjustment will enable you to accurately match it with the corresponding check. Let’s explore this in detail. 

Before proceeding, can you confirm whether the bill entered in the software includes expense category details? If it does, it should appear in your Profit and Loss report. However, if the bill consists solely of itemized entries without an associated expense category, it will not be reflected in the Profit and Loss report and will only be classified under Accounts Payable (A/P).

To ensure we're aligned, I'll include a screenshot for your reference.

If the bill indeed consists of the itemized entries, you'll need to assign a specific expense account from the Purchasing section of the associated items instead. This way, the bill will be posted to the expense account in the Profit and Loss report. 

Once everything is in place and the payment has cleared the bank, you can easily match the bill to the associated check. Also, vendor-related transactions will be linked to the Accounts Payable account, as these transactions represent amounts you owe.

I'll add a few articles you can refer to learn more about handling your downloaded bank transactions: 

• Fix bank transactions downloaded in QuickBooks Online
• Exclude a bank transaction you downloaded into QuickBooks Online 

You can always count on me for any additional concerns about managing your vendor transactions and organizing them effectively. Just hit the Reply button, and I will respond to your inquiries promptly.

Hello! Yes the bills only include itemized transactions. So how can I make it show on the profit and loss as we want to see the expense of the bill? I don’t want to lose the itemized transactions though as we track inventory.

I've got a way to ensure the expense account of a bill appears in the Profit and Loss report in QuickBooks Online (QBO), @rbutz.

Instead of entering the expense account directly in the Category section of the bill, you can assign it to the items themselves. This will allow the expense account to appear correctly in the Profit and Loss report.

Here's how:

1. Go to the Gear icon and select Products and Services.
2. Locate the item name and click Edit under the Action column.
3. Scroll down to the Purchasing Information section and select the appropriate Expense Account.
4. Click Save and Close.
   
    
   

    

Once done, run the Profit and Loss report and locate the expense account you assigned to your items. Then, click the amount to view its associated transactions.

Furthermore, you can organize your items into categories to gain more insights into your sales and inventory when generating reports in QBO.

Additionally, you'll want to consider QuickBooks Live Assisted for hands-on support when managing bills and customizing reports.

Please know the Community team is always available around the clock to ensure smooth sailing with your financial and inventory reports. Just reach out to us, and we'll be quick to respond. Take care!

I looked into this, but we don't want to change any of the categories as we keep track of inventory and COGS through these bills. I just want to make sure the expense of the bill get shown in the P&L and that the accounts payable/bill gets cleared out. Is there a way to do that?

Hello there, @rbutz.

I'm here to help you ensure that your bills reflect correctly in the Profit and Loss report under the expense account.

When you initially enter bills, ensure that each item is categorized under the appropriate expense account. For inventory items, categorize them under Cost of Goods Sold (COGS) or the appropriate inventory account.

If you run the P&L report on a cash basis accounting method, you will see the Cost of Goods Sold expense account. It will also clear the Accounts Payable account with unpaid transactions. After matching, review your Profit and Loss report to ensure that the expenses show up under the correct category. If adjustments are needed, you can use journal entries to correct any discrepancies while preserving the itemization for inventory purposes.

Moreover, you can also consider using QuickBooks Live Assist to have a private support session. This way, they can take a look at your reports and identify what went wrong.

If you have additional concerns with matching bill payments to the correct account, please don't hesitate to leave a reply. A screenshot would also be much appreciated. We're always here to help.