How to mark bills as paid before the money is withdrawn from the bank?

Clara55 · ‎August 22, 2023

I know how to use the enter bills and pay bills features in QuickBooks online. Here's my system: When I receive an invoice from someone, I'll enter the info as a bill and upload a copy of their invoice as an attachment at the bottom. When it comes time to pay the bill, some companies have electronic payment options, which I always utilize and that way the money will be withdrawn from our account with a few days. However, most of my bills are paid by check (not sent through QuickBooks, I send them through the bank or mail them myself), in which case it takes several weeks for the money to be withdrawn. Is there a way to mark bills I've "paid" (or sent out checks for), but have it sit in limbo, similar to the undeposited funds account option for deposits? This way I could create outstanding bills reports without having to comb through to exclude the ones that are paid but waiting to be withdrawn. Then when they deposit the checks and the money is withdrawn from our bank account, I can take it from limbo and record it as paid, through the "pay bills" button or through the bank feed.

Is there any options for me or is that not possible? It should be a feature if not.

Thanks!

KlentB · ‎August 22, 2023

I understand your situation and your desire for a more streamlined way to manage bills, Clara55.

While QuickBooks Online doesn't offer a feature similar to the Undeposited Funds account for business expenses, there are a couple of methods you can consider to help manage this process more effectively.

First, you'll want to consider setting up a separate bank account, something like "Pending Payment" or "Awaiting Withdrawal," in your Chart of Accounts. Then, use it as the holding area for the checks that are still in the process of being withdrawn. Once your vendors cash them out, we'll have to move the amounts to your actual checking account by entering a journal entry or logging a check affecting the placeholder.

Another approach is to use the Memo field when entering the bills. We can add a specific keyword or note to indicate that the check has already been sent. Then, modify the memo when the payment is withdrawn. This can help easily identify the outstanding bills when generating reports.

Remember that these methods involve some manual tracking, but they can help you keep a clear record. If at any point you're unsure about how to execute a specific step or need expert advice, I recommend consulting a qualified accounting professional. They're equipped to provide specific guidance based on your unique workflow and preferences.

Furthermore, I encourage you to send feedback to our Product Development Team. We regularly review customer requests and take them into consideration when prioritizing product enhancements. Follow these steps to submit your ideas:

Sign in to your company.
Click the Gear icon, then choose Feedback.
Enter your comments in the description box.
When you're done, hit Next.

Additionally, here's an article that you can read to learn how to monitor all the money you've paid to a supplier for a particular period: Run a report with vendor totals.

I'm still here if you require further assistance in handling your other company expenditures. Just add the details below and I'll respond as promptly as possible.

View solution in original post

KlentB · ‎August 22, 2023

I understand your situation and your desire for a more streamlined way to manage bills, Clara55.

While QuickBooks Online doesn't offer a feature similar to the Undeposited Funds account for business expenses, there are a couple of methods you can consider to help manage this process more effectively.

First, you'll want to consider setting up a separate bank account, something like "Pending Payment" or "Awaiting Withdrawal," in your Chart of Accounts. Then, use it as the holding area for the checks that are still in the process of being withdrawn. Once your vendors cash them out, we'll have to move the amounts to your actual checking account by entering a journal entry or logging a check affecting the placeholder.

Another approach is to use the Memo field when entering the bills. We can add a specific keyword or note to indicate that the check has already been sent. Then, modify the memo when the payment is withdrawn. This can help easily identify the outstanding bills when generating reports.

Remember that these methods involve some manual tracking, but they can help you keep a clear record. If at any point you're unsure about how to execute a specific step or need expert advice, I recommend consulting a qualified accounting professional. They're equipped to provide specific guidance based on your unique workflow and preferences.

Furthermore, I encourage you to send feedback to our Product Development Team. We regularly review customer requests and take them into consideration when prioritizing product enhancements. Follow these steps to submit your ideas:

Sign in to your company.
Click the Gear icon, then choose Feedback.
Enter your comments in the description box.
When you're done, hit Next.

Additionally, here's an article that you can read to learn how to monitor all the money you've paid to a supplier for a particular period: Run a report with vendor totals.

I'm still here if you require further assistance in handling your other company expenditures. Just add the details below and I'll respond as promptly as possible.

Rainflurry · ‎August 23, 2023

@Clara55

You can run a 'Transaction List by Vendor' report. Click 'Customize', under 'Rows/Columns', select 'Clr'. That will give you a report of all paid bills and show which ones have not cleared yet.

Clara55 · ‎August 23, 2023

Thank you for replying and understanding!

I'll play around with your suggestions and see if I can get something to work for us.

I'm also happy to hear there's a feedback feature, I'll definitely be utilizing that.

Edit: Actually, I'd be very happy to use the Memo option you suggested and have thought of it before, but I'm having an issue with it. When inside the Bill, I'll add a description, "paid" or the invoice number, but when I go to run a Unpaid Bill report and customize the columns to include memo/description, my descriptions don't show it. It's blank. Is there a way to fix this? It would be perfect if it actually worked.

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How to mark bills as paid before the money is withdrawn from the bank?