Vendor bills and payment

rolandlw · ‎June 13, 2020

Hello,

I'm quite new to Quickbooks and starting to use it, trying to do things the right way.

I'm stuck here when it comes to payments for Vendor bills:

- I create Vendor Bills each time a vendor send us an invoice (we buy inventory from them).

- we pay these bills directly from our bank, usually in two payments, and our bank is connected to Quickbooks so I can see the checking accounts

I am trying to mark the vendor bills as partly paid, and eventually fully paid once we do the final payment, by associating different payment from the checking accounts, but I can't find the right operations that need to be done. Can someone help and show me the right way to do this?

LieraMarie_A · ‎June 13, 2020

Welcome to the Community, @rolandlw.

When entering vendor payments in QuickBooks Online (QBO), you have the option to pay them using the Pay bills feature. I'll guide you how.

Select +New.
Choose Pay bills.
Select your payment account.
Modify the date.
In the Payment column, enter the payment amount.
Select Save and close.

Once you fully paid the bill, this will automatically mark as PAID.

Also, QBO will automatically download your transaction since your bank is already connected in the program. You just need to categorize them to make sure that they're recorded to the correct accounts.

You can run the Transaction List by Vendor to show you all the transactions for each vendor. You can also add the Open balance and A/P paid columns. Doing so helps you see the remaining balance and know the payment status.

Here's how:

Go to Reports.
In the Find report by name field, type in "Transaction List by Vendor."
Click Customize.
Change the reporting period.
In the Rows/Columns section, click Change columns.
Select Open Balance and A/P paid.
Click Run report.

To learn more about navigating your QBO account, check this article: Getting started with QuickBooks Online.

If you need anything else, the Community is the place to go. Have a great day.

View solution in original post

JenoP · ‎June 13, 2020

Joining the thread to help with your question about vendor payments, Roland.

QuickBooks will ask you the name of the payee when categorizing the downloaded bill payments in the Online Banking. That will essentially allow you to associate each transaction to specific vendors, so you don't have to create a separate account in your COA.

Also, select the Find match button instead of Transfer. Then, look for the existing bill or bill payment so you can attach the downloaded transaction to them.

You normally use the Record as transfer function if you're moving a transaction from one account to another. Here's an article that talks about this function: Transfer funds between accounts.

Please add another reply below if you need anything else.

View solution in original post

LieraMarie_A · ‎June 13, 2020

Welcome to the Community, @rolandlw.

When entering vendor payments in QuickBooks Online (QBO), you have the option to pay them using the Pay bills feature. I'll guide you how.

Select +New.
Choose Pay bills.
Select your payment account.
Modify the date.
In the Payment column, enter the payment amount.
Select Save and close.

Once you fully paid the bill, this will automatically mark as PAID.

Also, QBO will automatically download your transaction since your bank is already connected in the program. You just need to categorize them to make sure that they're recorded to the correct accounts.

You can run the Transaction List by Vendor to show you all the transactions for each vendor. You can also add the Open balance and A/P paid columns. Doing so helps you see the remaining balance and know the payment status.

Here's how:

Go to Reports.
In the Find report by name field, type in "Transaction List by Vendor."
Click Customize.
Change the reporting period.
In the Rows/Columns section, click Change columns.
Select Open Balance and A/P paid.
Click Run report.

To learn more about navigating your QBO account, check this article: Getting started with QuickBooks Online.

If you need anything else, the Community is the place to go. Have a great day.

rolandlw · ‎June 13, 2020

Thank you very much, this is helping a lot. I have an additional question, hope you can still help.
So, I marked the bill as paid, entering the amount and this went well. The system then wanted me to print checks but I cancelled, because I don't need this.
After, I went to my bank account list of transaction, and I moved the transaction regarding this payment to "categorized", assigning it to "Transfer: Inventory asset", knowing that I was buying stock from this vendor. Is that right?

Finally, do I need or can I associate this specific transaction to the specific vendor? May be, to do so, I should actually create an account for each vendor in the charter of account? I am basically trying to know how to associate each bank transaction to a specific bill...

Thank you in advance for your help,

Roland

JenoP · ‎June 13, 2020

Joining the thread to help with your question about vendor payments, Roland.

QuickBooks will ask you the name of the payee when categorizing the downloaded bill payments in the Online Banking. That will essentially allow you to associate each transaction to specific vendors, so you don't have to create a separate account in your COA.

Also, select the Find match button instead of Transfer. Then, look for the existing bill or bill payment so you can attach the downloaded transaction to them.

You normally use the Record as transfer function if you're moving a transaction from one account to another. Here's an article that talks about this function: Transfer funds between accounts.

Please add another reply below if you need anything else.

rolandlw · ‎June 14, 2020

Thank you so much, it's great to have such help!

I looked into the 'matching' but now understood why I'd not find anything... we work with foreign currency.

So when I try to match, I get this screen below.

It seems my exchange rate used when transferring the money is (and will probably never be) the same as the one in quickbook. I am afraid to update the home currency amount, I'll introduce errors in our account.

Do you have any thought about this?

Would it be simpler to add an account for each provider in the charter of account?

Roland

MaryAnn_E · ‎June 14, 2020

Hello there, @ rolandlw.

There are two options you can perform to resolve this currency issue. Let me share these insights with you.

If you have multi-currency enabled here's what you can do:

Delete the currency invoice.
Then create a new currency for the customer profile.
When you're done, create a new invoice.

Otherwise, you can calculate the currency amount of the payment based on the rate on the payment date. Then post the payment of the invoice amount to close it, with the difference to an Exchange Gain or Loss account.

To learn more about how multi-currency and the exchange rate works in QuickBooks, please check out these links below:

If there's anything else that you need help with, don't hesitate to post back here in the Community. Have a great day!

rolandlw · ‎June 14, 2020

Hello MarryAnn,

I am unclear why you suggest to delete the currency invoice.

First, I'm dealing with vendor's bills, not customer's invoice, and also, I already have enabled multi-currency, so my bill is in the correct currency.

My issue is that I paid the bill in the foreigh currency, at a certain exchange rate, and when I want to match this bill with my transaction in my bank account, the systems seems to say that it will update the home currency amount and I was unsure it would be well updated, but it seems so now that I look at it. Thank you.

learn55 · ‎November 02, 2022

I work at small company, and this vendor have a high balance and I generated check for a smaller amount then the bill , on the vendor its showing the check amount in the vendor exspenes account but not reducing the amount of the bill , its showing add to check in side window with the bill amount what do that mean ? and how can I fix it the comapny already have the check so I cant not delet or cancel the payment.

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