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DG96
Level 2

Difference between expense and a bill?

Which of the following is correct?

 

  • "Terms" can be entered against bills.
  • The "payment account" must be used on an expense.
  • It is only possible to create a recurring expense.
  • Only bills contain "item details".
  • You can only add attachments to an expense. 
Solved
Best answer June 27, 2020

Best Answers
GlinetteC
Moderator

Difference between expense and a bill?

Thanks for reaching out to the Community, DG96.

 

I'm here to provide you some insights about the difference between the two transactions. In QuickBooks, you'll enter Expense transaction at the time of purchase for goods or services that have already been paid. On the other hand, if you purchase and want to pay it later, then you'll enter the transaction as Bill.

 

The first and second bullets are correct. The third bullet, you can create recurring for "both" expense and bill transactions. Fourth, expense and bills contain "Item Details". Lastly, you can add Attachments to expense and bill transactions.

 

I've added some links you can refer to learn more information:

 

Please let me know if you have any other concerns. I'm always here to help.

View solution in original post

3 Comments 3
GlinetteC
Moderator

Difference between expense and a bill?

Thanks for reaching out to the Community, DG96.

 

I'm here to provide you some insights about the difference between the two transactions. In QuickBooks, you'll enter Expense transaction at the time of purchase for goods or services that have already been paid. On the other hand, if you purchase and want to pay it later, then you'll enter the transaction as Bill.

 

The first and second bullets are correct. The third bullet, you can create recurring for "both" expense and bill transactions. Fourth, expense and bills contain "Item Details". Lastly, you can add Attachments to expense and bill transactions.

 

I've added some links you can refer to learn more information:

 

Please let me know if you have any other concerns. I'm always here to help.

View solution in original post

Michaelak
Level 1

Difference between expense and a bill?

If I have a subcontractor invoice me at the beginning of the month, and I pay them towards the middle or end of the month, would I enter the invoice as a bill or expense at the beginning of the month?

DivinaMercy_N
QuickBooks Team

Difference between expense and a bill?

Look no further, @Michaelak.

 

If you'll pay the invoice sent by your subcontractors in the middle or end of the month. You'll record this as a Bill. As per my colleague, @GlinetteC discussed above, Expense transactions are those paid at the time of purchase. On the other hand, Bill transactions are those purchases that you'll pay at a later date. 

 

Follow along below to create a Bill right away:

  1. Click the +New button.
  2. Choose Bill
  3. Enter the name of your subcontractor in the Vendor field.
  4. Input the Bill date (date you receive the invoice) and Due date (date you'll pay the invoice).
  5. Fill in the column for Category or Item details. It depends on what type your business owes to the subcontractor.
  6. Once done, hit Save.  bill22.JPG

 

Then, to record payments on the bill you've created, please head to Enter bills and record bill payments page for the detailed instructions.

 

Also, QBO offers some reports to help you monitor your paid and unpaid bills. To get started, just go to the Reports menu and scroll down to the What you owe section. bill23.JPG

 

Let me know if you have further questions in recording transactions with your subcontractors. I'm always here to give answers and clarifications. Have a great day ahead. 

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