Bill Pay/Transactions for Vendors being Washed out with Plus and Minus??

WCC_ML · ‎July 17, 2024

Please help...

Of Note:

I am new to QBO as of a few months ago.

We use Melio through our credit card to make ACH payments. We have it set up to where Melio syncs all bills, payments, vendors, etc., with our QBO account. For instance, when I pay a vendor, I manually enter a bill in Melio which then syncs and creates that bill in QBO under that specific vendor for which I created the bill.

We have our credit card account synced with QBO under Bank Accounts.

My Questions:

When I make an ACH payment in Melio, it syncs the bill I made to that vendor in QBO. The bill amount is listed as a positive amount, which matches all the other transactions for that vendor which I have previously conducted via check or credit card. However, when that ACH payment clears the credit card account and hits the credit card register in QBO, it of course matches to bill for the vendor I made in Melio. The problem I am having is that once it matches, it doesn't match like it would a check, it matches by creating another transaction of the same amount for that vendor yet listing it as a negative amount. This in turn clears the bill amount owed for that vendor, but then messes up the total paid column at the bottom of the vendor page, washing out that whole transaction with the plus and minus. Is this wrong? I have thus far been going back and voiding the bill and deleting the amount and then just categorizing the transaction from the register to the vendor. This takes way too much time. Do I need to do something different, or am I even doing anything wrong?

Like I said, I am new to QBO, so maybe this is exactly how it should be. If so, can someone explain the "why" behind this so I can better understand?

Any help is appreciated, thank you!

ShyMae · ‎July 17, 2024

Hello, WCC_ML. It appears on the original post that Melio is syncing correctly with your QuickBooks account for entering bills. Let me explain the negative amount you see.

After generating a bill through Melio, the next step is to wait for the payment to show up in your credit card register. When the payment transaction appears, match it with the bill in QuickBooks Online.

The system will automatically generate a Bill Payment transaction to mark the bill as paid once you match them. This transaction will show up as a negative amount on the vendor's account since that means they are no longer owed that amount, and instead, it has been subtracted from their account.

Please see the attached sample for visual reference.

I'm also adding these helpful resources to learn how to manage your bills:

This process will mark the bill as paid and update the vendor's balance accordingly without creating a duplicate transaction. Feel free to reach out for further assistance or clarification on this matter. Have a good one!

View solution in original post

Tori B · ‎July 18, 2024

Good morning, @WCC_ML.

Thanks for checking back with us.

When you record a payment of $500 and another of $100, your vendor balance should reflect as $0. Your vendor balance won't show $600 because the payments have been applied, thus reducing the amount owed. I'm including some sample screenshots below that show the bills and payments applied.

The bills:

The Payments:

I hope this helps clarify the process a bit better. Please don't hesitate to let me know if you have any additional questions. I'm happy to help out. Take care!

View solution in original post

CharleneMaeF · ‎July 17, 2024

My main goal is to ensure your Melio and QuickBooks Online transactions match, WCC_ML. Let's work together to resolve the negative amount.

When syncing Melio with QuickBooks Online (QBO), QBO will automatically generate a Bill Payment entry to mark the bill as paid once you match the entries. It shows a negative amount on the vendor's account since the fund has been deducted from their account.

To handle this, we'll have to wait for the ACH payments to appear in the register after creating and paying the bill. Once it shows, let's match it with the bill entry in QBO. I'll show you how:

Go to Transactions and then select Bank transactions.
Find a downloaded record:
- Business view: look for Matches found in the Assign to column.
- Accountant view: look for Matches found in the Category or match column.
Choose the downloaded record to expand the view. Note the date, Description (or Bank detail), and amount spent.
Review the Suggested matches for any possible matching transactions already entered in QuickBooks.
Select the link next to each entry to get more details.
Check the entries, then select Match.

Additionally, I've added these articles to help you review your transactions:

Finally, it's recommended to reconcile your QuickBooks accounts to ensure they match with bank or credit card statements.

This thread is always open if you have additional questions or concerns about creating vendor transactions, paying owed amounts, and categorizing bank transactions. I'm ready to help you out.

WCC_ML · ‎July 17, 2024

I think i follow partly... so to further clarify, what process do I need to follow moving forward when I pay through Melio?

-Create Bill through Melio

-pay bill through melio credit card

-when transaction hits credit card register in QBO, exclude it

but then what do i do with the outstanding bill and money owed in QBO? if i mark it as paid it is still going to show as plus and minus. does that make sense?

ShyMae · ‎July 17, 2024

Hello, WCC_ML. It appears on the original post that Melio is syncing correctly with your QuickBooks account for entering bills. Let me explain the negative amount you see.

After generating a bill through Melio, the next step is to wait for the payment to show up in your credit card register. When the payment transaction appears, match it with the bill in QuickBooks Online.

The system will automatically generate a Bill Payment transaction to mark the bill as paid once you match them. This transaction will show up as a negative amount on the vendor's account since that means they are no longer owed that amount, and instead, it has been subtracted from their account.

Please see the attached sample for visual reference.

I'm also adding these helpful resources to learn how to manage your bills:

This process will mark the bill as paid and update the vendor's balance accordingly without creating a duplicate transaction. Feel free to reach out for further assistance or clarification on this matter. Have a good one!

WCC_ML · ‎July 18, 2024

Thanks for explaining the negative amount I am seeing! That makes sense as far as the vendor owed/paid balance amount goes.

One more clarifying question, when you say, "The total paid column should also reflect the correct amount," do you mean that if I have previously paid a vendor $500 and did a Melio bill pay of $100, that when I match the transaction from the register and QBO creates a bill pay transaction to wash out the money I owed them via the $100 bill, the total column at the bottom should read $600?

When I did this before the "total" paid vendor amount at the bottom was not calculating the hypothetical $100 since it was washed out by the bill pay transaction of -$100.

Thank you for your help!!

Tori B · ‎July 18, 2024

Good morning, @WCC_ML.

Thanks for checking back with us.

When you record a payment of $500 and another of $100, your vendor balance should reflect as $0. Your vendor balance won't show $600 because the payments have been applied, thus reducing the amount owed. I'm including some sample screenshots below that show the bills and payments applied.

The bills:

The Payments:

I hope this helps clarify the process a bit better. Please don't hesitate to let me know if you have any additional questions. I'm happy to help out. Take care!

WCC_ML · ‎July 18, 2024

So in order for me to see how much I have paid a vendor to date, I'd have to now go into a report and run it that way?

Thanks!!

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Bill Pay/Transactions for Vendors being Washed out with Plus and Minus??