Linking an open bill to a check number uploaded into QB

Welcome to the QuickBooks Community, becky614. Let me provide details on how categorizing works in QuickBooks Online. I've also got steps to ensure you can match your entries on the program.

Beforehand, may I ask which bank account is the bill payment or checking coming from? I appreciate any further details so I can check if there's an ongoing issue or bug on our end. 

QuickBooks will automatically match your transactions once it detects entries with similar amounts and details. Otherwise, it creates a new transaction record for you and that's the reason the system wants to create a new bill payment. I recommend reviewing the manually entered entry into the downloaded one to verify if they have the same details.

Once verified that they contain the same info and QuickBooks still can’t find matches, I recommend finding the right one by using the Find other records option so you don’t get a duplicate record.

Here’s how:

1. Go to the Banking menu and select the For Review tab.
2. Choose the bank transaction to see more info about it.
3. Review the info under “Record found.” This section shows records you already entered into QuickBooks that it thinks are a match for the downloaded transaction.
4. Click the Find other records radio button. This opens the Match transactions window.
5. Select the box to uncheck the recommended match.

After that, you can open this article to see additional steps to be taken to finish the process:  Fix bank transactions downloaded in QuickBooks Online. You may go to the Find the right match section.

Lastly, refer to this article if you need instructions on how you can reconcile your accounts to avoid discrepancies: Reconcile an account in QuickBooks Online.

You can always post here if you still have concerns about categorizing transactions in QuickBooks or other questions related to QBO. I'm here to help anytime, becky614. Take care and stay safe always.

Hello - Thank you for the response. 

However I don't think that's actually addressing my issue. I am not having trouble linking a bank transaction, but rather linking a manually added check that was written outside the system, and is being logged in QB before it has posted and cleared the bank. 

I normally load bills from vendors. Write checks in my legacy AP system. Upload those outside checks into QB with a batch upload. And then link those checks to the bills they have paid. Once the real check clears the bank and posts to the bank transactions in QB, then I link the cleared check transaction to the "Bill Payment" that is created when you link the "placeholder check" to the bill.

The part of the process that has changed is linking the "placeholder check" - digital record of a written check yet to clear - to the bill it is paying off. 

Here are some photos to give you an idea of what's happening:

The final image shows the P&L view of a project for the bills I am using as an example. Until I can link the bills to the check with a bill payment, I have duplicate charges, overinflating my costs. I called in a few days ago and was instructed to instead of linking the the check and the bill into a bill payment like I always have, to instead start to create a bill payment by linking them, and then instead of saving it, click the "print checks" button at the bottom of the bill payment creation screen to add that payment to the check queue, and then just leave it in the check queue indefinitely. 

That solution only works to balance the cost and payment in the vendor account. It still, however, leaves two expenses in my P&L.

I don;t want to stop loading checks in as they are written, because then its harder to track uncleared checks and balance my account. If needed, I could stop loading the written checks, and just wait for them to clear the bank and post to the transaction record so they can be linked to the bill at that time. 

Please help. 

Thanks

Hi there, becky614.

I appreciate all the information you provided as well as the screenshots. And I want to ensure your issue about linking an open bill to a check number in QuickBooks Online (QBO) is resolved.

To be sure we're on the same page, I'd like to verify how did you enter the check. Did you enter the check by uploading it using the Receipt feature? If yes, how did you review it? Did you create an expense or match it to the bill created? If not, did you enter the check by manually recording it in QBO? Then, adding the bill to the check? And you're not able to match the check number to the bill payment number? Any extra information is much appreciated.

We're looking forward to hearing from you.

Hello! Thanks for replying. 

I just checked and the issue is not resolved. 

I am entering the checks through a batch upload - not as receipts. I am not creating expenses, but rather matching the checks to a bill once they are loaded. 

Here is my process step-by-step. 

First I enter bills from vendors:

 - Vendors email me invoices that I forward to QB and upload un the "receipts" function

 - They are entered as "Bills" and logged as the type "Category Details"

 - Each bill is logged under the vendor and tagged to a "Customer" for Project level tracking, and to a class

Pay bills with Checks

1. I write the checks by hand with my actual checkbook

2. I record my checks in a check register that I keep in excel

3. I create a CSV file of the new batch of checks I have written

4. I upload that batch of checks via the CSV file using the "Batch Transaction" feature - they are uploaded as "checks" with the type "Category Details" 

5. Once they are uploaded, I go to the "vendors" section of QB and scroll through each vendor to review my accounts payable. When I get to a vendor that was included on the batch of checks I just uploaded, I link the check to the open bill from within the Vendor page

6. I click on the check. When I do, the side pane pops up and shows all the open bills for the vendor. I select the bill (or the first in a group of bills) that is paid for with the check. 

7. THIS IS WHERE THE PROCESS RECENTLY CHANGED! When I select the bill to link to the check, a new window pops up for a "Bill Payment." This bill payment historyically would override the check - it would be the same "Bill Payment Number" as the Check Number, and it would be the new "single transaction line" that shows a bill that was paid with a check. 

8. Once this link is made, the vendor account is reduced by the amount of the check payment, and the "check" transaction line dissappears - replaced by the Bill Payment. 

9. I now wait for the real check to be received by my vendor in the mail, and for them to deposit the check. 

10. Once they deposit the check, the transaction shows up on the "Bank Transaction" record, and I can link the bank transaction to the "Bill Payment" under the vendor's account, completely closing the loop and reconciling all transactions. 

What is happening now is that the "Bill Payment" that is created when I select the bill to link with the check in the vendor's account is TOTALLY different from the check - it has it's own number and acts as a seperate transaction. All that it does that is beneficial is create a negative transaction that offsets the amount of the bill. However, the check does not get linked and cleared away, meaning I now have transactions for the same thing (a bill and a check) that over inflate my costs. 

I am more than happy to get on a call and walk you through my process and where the problem is. Just let me know when is a good time to do this. 

Thanks

Chase

Thank you for getting back, becky614. I appreciate every detail you've shared today. I can assist you in linking your open bill to the check you've uploaded.

When uploading your check, set the Category Type under Accounts Payable to link it with your open bill. This way, you can use it in paying your existing payable.

If it's already added to QuickBooks, modify the information through the vendor's transaction list. To start:

1. Click on Expense at the left pane, then Vendors.
2. Select the vendor name, then go to the Transaction List column.
3. Locate the check, then change the Category to Accounts Payable.

Once done, you're ready to link the two transactions.

1. Tap on View/Edit from your check transaction.
2. Add the bill.
3. Review the details under the Outstanding Transactions and Credits section.
4. Click on Save and Close.  

On the other hand, if you need to call for assistance, you can contact support during their business hours. 

I'm adding this material for more hints on quickly entering multiple expenses, checks, or bills using the Batch transactions feature: Create multiple bills or expenses in QuickBooks Online Advanced.

If you'd like to track your vendor bills and payments manually, run through the resources from these materials as your reference: 

• Enter and manage bills and bill payments in QuickBooks Online
• Learn the difference between bills, checks, and expenses in QuickBooks Online

Let me know if you have follow-up questions regarding your bills or check entries. I'm just a few clicks away to help you again. Have a good one!

Hello and thanks for the response. I am still having the issue where the bill payment does not "close" the check...

Hi there, @becky614.

I appreciate you for leaving a detailed response about linking your checks to your bills. Let me provide more insights on the matter and how to contact our support team.

Firstly, QuickBooks Online (QBO) transaction numbers update every time a new transaction occurs, but QBO allows users to input them manually. This means that the system may have issues matching and getting them in order. It also means that there could be transactions with the same number, which is why you are prompted to confirm if you want to save your transaction with an existing number.

Additionally, I suggest contacting our phone or chat support for additional help linking your checks to your bills. They can give you further assistance regarding your transactions in a safe environment. 

Here's a step-by-step guide on how:

1. Go to the Help menu and select the Search tab.
2. Then, click Contact Us.
3. Then, enter a brief description of your concern and select Continue.
4. Lastly, choose either Start a Chat or Get a Callback to start connecting with them.

You can reach them Mondays through Fridays from 6:00 AM to 6:00 PM Pacific Time and Saturdays from 6:00 AM to 3:00 PM.

I'm leaving this article for more information on tracking bills and recording payments: Enter and manage bills and bill payments in QuickBooks Online.

Lastly, if you want to see how much you're paying each vendor every month, feel free to browse through this article: How to run and save a monthly expense report by vendor.

Keep us posted if you have more questions about your bills and checks. We're just one post away to help you out.

I'm having the same issue! So frustrating. It's not a new transaction! It's a check that was not originally linked to a bill but it should have been. So in the past you were able to go into the check already written and link the bill to it but now it it wants to create a whole new check!

I appreciate you taking time to reach out to the Community, @ke2000 .

I do understand the importance of linking a written check to a bill. Let me provide you with some insights about linking a bill to an open check.

In situations like this, it is best to record the expense under Accounts Payable. This is the most effective way to apply a bill to a check.

Here's how:

1. Go to the Expense tab, then choose a check you want to link.
2. Under the Category section, click on the dropdown arrow ▼ and choose Accounts Payable (A/P).
3. In the Action column, click View/Edit.
4. From there, the existing bills of the chosen vendor will automatically pop up.
5. Choose a bill you want to add, then click Add.
6. Click on Save and close, once you're done.

Moreover, I'm adding this helpful article about managing bill payments in QBO: Enter and manage bills and bill payments in QuickBooks Online

Please let me know if you have other questions regarding Bills and checks by dropping a comment below. I'll be here to help.

I have been having the exact issue. I use this feature almost daily and now it is not allowing it and creating the new bill payment. I contacted QB and had to have them do a screen share in order to explain what it was doing.  After they saw the issue they came back and said it was a new known glitch and added me to the issue. Hopefully it is resolved soon!! 

That's great to hear it's not just me and hopefully isn't just getting brushed under the rug! I'm just a super small business, but this seems like a fundamental flaw that I assumed was impacting others. 

The best workaround I've come up with is to just not enter the checks that I've written and instead wait for them to clear the bank and show up in the bank transaction feed. Once they're there I can link them to an open bill and everything is fine. But this gives me no visibility to uncleared checks in QB which isn't great!