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Enter bills and record bill payments in QuickBooks Online

SOLVEDby QuickBooksQuickBooks Online2389Updated 1 day ago

Learn how to track bills and record the payments.

In addition to tracking sales, QuickBooks Online makes it easy to record business expenses. Entering your income and expenses gives a more complete picture of your business and profit.

If you plan to pay for the expense in the future, enter it as a bill. You can record bills one at a time or multiple bills for multiple vendors at once. On the other hand, if you've already paid for a business expense, enter it as an expense. These specific transaction types tell QuickBooks how to record everything. Here's how to enter bills and record payments towards them in QuickBooks.

Or, learn the difference between bills, checks, and expenses.

Enter bills into QuickBooks

After you get a bill from a vendor, here's how to record it:

  1. Select + New.
  2. Select Bill.
  3. From the Vendor ▼ dropdown, select a vendor.
  4. From the Terms ▼ dropdown, select the bill's terms. This is when your vendor expects to be paid.
  5. Enter the Bill dateDue date, and Bill no. as they're recorded on the bill.
  6. Enter the bill details in the Category details section. From the Category dropdown, select the expense account you use to track expense transactions. Then enter a description. Tip: You can also enter specific products and services in the Item details section to itemize the bill.
  7. Enter the Amount and tax.
  8. If you plan to bill a customer for the expense, select the Billable checkbox and enter their name in the Customer field. Learn more about billable expenses.
  9. When you're done, select Save and close.

Tip: If you have multiple worksites or business segments, you can also select locations from the Location ▼ dropdown. Learn how to turn on and use location tracking.

Record payments towards bills

There are two ways to record bill payments. Follow the steps in the section depending on if you paid by credit card or with a check.

Use this method to record cash and credit card payments towards a bill. Record separate payments after each time you make them.

Important: This is only recording the accounting for bill payments you make. You still need to process payments the way your vendor requests:

  1. Select + New.
  2. Select Pay Bills.

This shows all outstanding bills you've entered into QuickBooks, including their balances and due dates. By default, it shows the last 365 days. To change the date range or only for a specific payee (ex. vendor), select Filter.

To record payments made towards a bill:

  1. From the Payment account dropdown, select the account you paid the bill from. For instance, if you paid from your checking account, select checking. Tip: To record payments for the same bill from different accounts (ex. part by check and part by credit card), or record separate payments on different days.
  2. If you select a checking or savings account, you can enter the Starting check no. This is optional.
  3. Enter the Payment date.
  4. Select the checkboxes for the bills you made a payment towards.
  5. In the Payment column, enter the amount you paid towards each bill. Tip: If you have credit with the vendor, you can apply it in the Credit Applied column.
  6. When you're done, select the Schedule payments online ▼ dropdown. Then select Save, or Save and close. Or select Schedule payments online to learn about available payment processing options.

Each time you record a payment, it shows up on the Expenses menu. The bills are marked as paid and checks are prepared for printing. Learn more about printing checks in QuickBooks Online.

Only follow these steps if you paid with a check. This records the payment in a specific way so QuickBooks stays accurate:

  1. Select + New.
  2. Select Check.
  3. From the Payee dropdown, select the vendor you paid. This opens a window with all of their outstanding bills.
  4. Select Add to add an open bill to the check. Note: If you don't see this, select the small arrow next to the amount. If you have credit with the vendor, you can also add it from the Credits section.
  5. From the Bank account dropdown, select the account you made the check payment from.
  6. In the Amount field, enter the check amount.
  7. In the Outstanding Transactions section, select the bills the check payment went to. Tip: If it covers multiple bills, select the checkboxes for those bills. You can split the payment and enter an amount for each bill in the Payment column.
  8. When you're done, select Save and new or Save and close.
  9. Tip: You can also select Print check to print out a physical check.

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