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How do you record purchases made on credit card that should be linked to a PO?

I have just started using Quickbooks Online, which is  a lot different than the Quickbooks Desktop I've used in the past, and I have some questions about bills and expenses. I've read bills are for things that have to be paid still, and expenses are for things that are already paid, such as credit cards. I can't figure out what to do about POs paid on credit cards. We like to have our POs connected to bills and such. So if we purchase something on terms, I simply do the copy to bill so it's linked, and then it shows up in the Quickbooks Bill Pay. If we pay for office expenses on a credit card, I was waiting for it to roll into the bank and then I add the expense from the reconciliation screen. (Right now it all shows as one account because our "credit" card is actually a Visa debit card.) So to get to the actual problem, we made a PO to purchase something from a vendor to resell to our customers. We paid for it on credit card, but we really didn't want to put it as an expense. We just don't want it unlinked showing up as an expense with the gas and office supplies. Here is what I just started doing as a solution: I copy the PO to a bill, then I remove the bill from the Bill Pay (marking that we pay this vendor outside of online bill pay), then when the charge rolls into the bank I link the bill to the charge. It seems to be working just fine, however it puts down that it's paid by check, with no way to change it. Right now that doesn't bother me too much, because it is pulling from our checking account. I do worry that in the future when we get a "real" credit card this will mess things up with our balances, from showing it's paid with check. We have multiple vendors we purchase from with credit card only. So the question is, how do you record purchases made on credit card that should be linked to a PO? Thanks in advance!

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Best answer 03-07-2019

Accepted Solutions
Moderator

Re: How do you record purchases made on credit card that should be linked to a PO?

Hi there, @jl_aimhigh.

 

Let me help share some information about recording purchases made on credit card.

 

There are several ways to record credit card payments in QuickBooks. Since you mentioned that you want it linked to your purchase order, then we can do so by creating a bill instead of a check.

 

You're already on the right track by linking your purchase order on the bill. When you make a payment to this bill, you have the option to select the credit card account. Please check the

screenshot below for your reference.

 

 

 

 

You can also check this article for other ways to record credit card payments: How to record credit card payments.

 

Please keep me posted if you need further help with the process. I'll be here to assist you in any way I can. Best regards.

1 Comment
Moderator

Re: How do you record purchases made on credit card that should be linked to a PO?

Hi there, @jl_aimhigh.

 

Let me help share some information about recording purchases made on credit card.

 

There are several ways to record credit card payments in QuickBooks. Since you mentioned that you want it linked to your purchase order, then we can do so by creating a bill instead of a check.

 

You're already on the right track by linking your purchase order on the bill. When you make a payment to this bill, you have the option to select the credit card account. Please check the

screenshot below for your reference.

 

 

 

 

You can also check this article for other ways to record credit card payments: How to record credit card payments.

 

Please keep me posted if you need further help with the process. I'll be here to assist you in any way I can. Best regards.