What is the difference between Expense Transaction and Cheque Transaction?

Still having trouble understanding the difference between a check and an expense.  They both debit an expense account/category and they both credit some other account like a bank account or a credit card account.  Yes, one includes a check number, but ...

Why does QBO make this so complicated?  Doesn't a check represent an expense transaction?  So why have two descriptions of the same thing?

Hello there, CalClassKen.

It can be confusing when both Check and Expense report a transaction as an expense and a payment simultaneously. Let me clarify the key differences.

QuickBooks Online (QBO) handles them in slightly different ways in the accounting records. Please take note of the following:

• Check and Expenses are for services or items paid on the spot.
• If you need to print a check, record an expense as a Check, instead of an Expense.
• If you paid something via credit card, use Expense.
• If you paid something via EFT, you should still use Check or Expense. You can enter EFT in the Check no. field.

So, the key difference is that a Check transaction includes the check number detail, which can be printed, while an Expense transaction does not.

In addition, you can effectively track vendor payments within a specific date range by reviewing this article: Run a report with vendor totals.

I'm happy to continue assisting you with any other concerns you may have while managing your account.

Hi Glinette,

I truly appreciate the time you took to reply here.  I am trying hard but just can't make sense of the difference between checks and expenses.

• Check and Expenses are for services or items paid on the spot.
• If you need to print a check, record an expense as a Check, instead of an Expense.
• If you paid something via credit card, use Expense.
  How is this different from a check?  Obviously a check would imply a bank account, but the credit for a credit card tx would simply go to the credit card liability account instead of a bank asset account. 
  True that one wouldn't normally print something paid by credit card, but the only difference here is whether the user clicks a 'print' button or not.  If it's a credit card payment the user wouldn't attempt to print something because there's obviously no reason to do so.  If a check, the user would click the 'print' button.  It gets even worse in the next bullet below...
• If you paid something via EFT, you should still use Check or Expense. You can enter EFT in the Check no. field.
  This is EXACTLY the same as a check except that one wouldn't normally "print" something for an EFT but would print a check.  The debits and credits are EXACTLY the same.  The only difference is using the letters EFT in the check number field instead of a number corresponding to a printed check.  The accounting is EXACTLY the same so what would make someone choose 'Check' vs 'Expense'?

So, the key difference is that a Check transaction includes the check number detail, which can be printed, while an Expense transaction does not.
Got it.  But both 'expenses' and 'checks' have a reference number (aka check number) so there's really no functional difference between the two things beyond confusing the accounting.  If someone posts an EFT tx as a check one day and and posts another EFT tx as an expense a week later, those items will be treated differently, making it difficult to manage the accounting.
Intuit did this for a reason but the reason still eludes me.
This sort of 'accounting perversion' make me reluctant to continue my transition from Desktop to OnLine.

Just for fun I'll mention one other 'accounting perversion' that's hard to grasp.
Suppose I bill a customer for some work and they pay the invoice.  Then suppose a month later I want to refund $100 to that customer for some reason.

It's easy enough to credit the customer $100, but if I want to send them a check for that amount it is impossible to show that payment (a banking tx) in the customer view so there's no way to see the events that took place when viewing the customer data.

Pretty discouraged by these illogical OnLine-isms. 

@CalClassKen 

An Expense transaction allows you to use a bank account, cc account, or other current asset account (OCA) as the payment account.  In Desktop (and Online), a check can only be assigned to a bank account.  Remember, the vast majority of QB users are not accountants.  When Desktop was the only option 20 years ago, you paid for expenses with either a check or credit card.  Now, you have many other payment options and a "check" or "credit card" is not really accurate anymore.  If I pay with Venmo, ACH, or wire, IMO an Expense transaction makes more sense.  A check or cc charge (your only two options in Desktop) really don't make sense.  Yes, there is some overlap between a Check and Expense transaction, but there are differences and once you get used to them, it's easy to get used to having both options.  I certainly wouldn't call it "accounting perversion" as it's still debits and credits, it's just the transaction type that's different.           

@CalClassKen 

"It's easy enough to credit the customer $100, but if I want to send them a check for that amount it is impossible to show that payment (a banking tx) in the customer view so there's no way to see the events that took place when viewing the customer data."

If you're issuing a refund payment, create a Refund Receipt (New > Refund Receipt) with a note in the memo field.  That will show under the customer's account and you can easily see why it was issued.