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Pay a vendor

SOLVEDby QuickBooksQuickBooks Online197Updated 2 weeks ago

Learn how to make a payment to a vendor in Online Bill Pay.

Save time by making a vendor payment through Online Bill Pay (available feature since Jan 12, 2018). In this article, we'll explain what you need to know about this feature and how to make a payment.

Setting up

When setting up bank transfers with your vendor, there's a few things to know:

  • You can only set up bank transfers with a vendor through a private bank add.
  • We'll initiate a small test deposit of a penny into your vendor's bank account. This is done to verify the bank account can receive payments. (Note: If the test deposit is not successful, the bank account entry will be invalidated. A new bank account entry will need to be made for the vendor.)
  • After manually adding a vendor's bank account, the earliest process date that can be selected is 2 business days after the bank account was added. This is to ensure the test deposit is successful. (Note: A federal holiday will add one additional day to processing.)
  • If the test deposit is not successful and the bank account is invalidated, the payment will still process. The payment will go out as a check payment.
  • If a payment needs to be made immediately, schedule a check payment before adding the vendor's bank account.

Make a vendor payment

When making a payment, a bill will be created behind the scenes and synced back to QuickBooks Online along with the payment initiated. You can code the necessary tracking categories required for the bill.

  1. Login to your QuickBooks Online account.
  2. On the dashboard, select the Bill pay online widget.
  3. Select the Make a payment tab.

    Bill pay online widget in QuickBooks Online

  4. Enter payment information for vendor.

    Send a payment in QuickBooks Online

  5. Select Choose delivery method.
  6. Select Bank transfer or Check.(Note: For a bank transfer, if the vendor hasn't already been set up, enter bank account details.The bank account will be auto-confirmed immediately. For check, select a process date and edit vendor information if necessary.)

    Delivery method for vendor payment in QuickBooks OnlineVendor payment details in QuickBooks Online

  7. Select Review and submit.
  8. Select Submit payment.

    Review and submit vendor payment in QuickBooks Online

A bill is automatically created in the background for this payment:

  • The description field on the bill is populated with Pay a Vendor Auto Created Bill.
  • This auto-created bill is not editable.

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