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.

D

DG96

Solved

Difference between expense and a bill?

Forum|Forum|6 years ago
June 27, 2020
2 replies
101 views

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.

QuickBooks Accountant Online

Best answer by lin_jcaj

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.

L

lin_jcajAnswer

Level 9

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.

U

ushuaia_22

Hello, just want to confirm, so if the invoice has been received by the vendor and will not be paid yet, so this will be tagged as "bill" in the projects section, right? but, if this invoice has been paid already, this will be added to "expense", right? what about if I want to pay the invoice that was initially inputted as "bill"? what should I do?

Also, will the client see if I want to add these expenses/bill in the project section? I don't want this to be seen by them as, of course, there is a mark-up, what should I do? Is ticking on and off the "billable" in the the category details section will do this?

K

Kevin_C

Moderator

Thanks for joining this thread, @ushuaia_22. I'll clarify a few things about how the bill works in QuickBooks Online (QBO).

In QBO, you'll enter an Expense transaction at the time of purchase for goods or services that have already been paid for or for items paid-on-the-spot. On the other hand, if you purchase something and want to pay for it later, you can use Bill to track what you owe.

For more information about the difference between an expense and a bill, see this article: Learn the difference between bills, checks, and expenses in QuickBooks Online.

If you want to pay the bills in the future, you can simply use the Pay bills feature in QBO. For your reference in entering the bills and processing the payments, visit this article: Enter bills and record bill payments in QuickBooks Online.

At this time, the option to manage the client's access is unavailable. For now, I suggest sending feedback or feature requests to our developers. You can submit them directly from your QBO account. Here's how:

Go to the Gear icon, then select Feedback.
Enter your suggestions, then select Next.

Also, the billable expense option is used when you incur expenses on your customer’s behalf when you perform work for them. It can only be used to reimburse them when they receive their invoice.

Let me know if you have other concerns about managing business expenses and bills in QBO. You can drop a comment below, and I'll gladly help. Take care!

T

tlm84

I am working with a client who started making entries in QB Online a couple of weeks before I was fully authorized. They process "check requests." In other words, at this time they complete a check request for their vendors and then handwrite checks vs having them printed through QB. An issue we are working to streamline.

Anyway, the first half of January, the entries were made as expenses, not bills, so they show as Type: Expenditures. I'm unable to see a Vendor Balance Detail because those weren't entered as Bills. Would it be best practice to go back to those expenditures and delete them and re-enter as Bills? I have all the information as far as check number, invoice date, etc. The checks have come through the bank, so they are paid. Will I need to go back into those Bills and mark them paid?

Thank you.

K

Kevin_C

Moderator

I appreciate you for chiming into this thread, @tlm84. I'd be delighted to share some information about properly recording vendor transactions in QuickBooks Online (QBO).

We're unable to suggest what specific transactions you should record into your clients' books as long as you have correctly tracked their vendor transactions on time. However, to keep track of Vendor balances, entering bills is essential for knowing how much you owe vendors. You'll want to refer to this article for details on what transaction type you can record, depending on how it will be used: Learn the difference between bills, checks, and expenses in QuickBooks Online.

You're correct that expenses and check transactions will not appear in the Vendor Balance Detail report. This is because the report only reflects payments coded to expense accounts and not true vendor totals.

To get your vendor totals for all of the money-out transactions, I suggest running the Transaction List by Vendor report instead. You'll only have to select the correct Report period to show what transactions have been created associated with your vendors. You can switch to the classic view if necessary.

Furthermore, you can also run the Transaction List by Date report to reflect all payments to your vendors. Here's how:

Go to the Reports menu and look for the Transaction List by Date report.
Choose the Report period appropriately.
For Group By, select Vendor.
Tap Customize.
Filter by the Transaction Types. If you want to report on a particular vendor or group, select the Name ▼ dropdown menu, then select the appropriate vendor(s).
Click Run Report.
Pick Save customization, then hit Save.

Additionally, you can check out this article for additional guidance on handling your business expenses: Enter and manage bills and bill payments in QuickBooks Online. Simply navigate to the Record payments towards bills section for relevant steps in paying your bills in QBO.

Please know that you're always welcome to post a reply in this thread if you have any other questions about managing your vendor transactions. I'll be here ready to assist you. Have a great day ahead!

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