recording prescheduled vendor payments

ytwiggy · ‎April 29, 2025

Hi All;

Using QB Desktop Accountant v 2014

My questions is, How would you record this - my client schedules vendor payments 30 days out (ie its currently 4/29, but my client is scheduling payments on invoices due in May (ex: 5/15) which the bank will than issue payment in May (ex 5/15)).

I'd like to record these before the payments are actually issued but I'm not sure the best way to do so. Especially as the actual check number isn't issued until payment is actually issued.

It would be great if there was a way to record them where they sit in a 'holding' spot so when I do have a check number I can enter it. But in the meantime, it will show invoices paid or at least scheduled to be paid on (ex 5/15).

Thanks for your thoughts/considerations

Rainflurry

@ytwiggy

It's fairly labor-intensive, but you can do it. Create a bank account in QB called "Money Out Clearing". Use that account to pay the bills on 4-29. That removes the bills from A/P and offsets that amount with a negative entry to Money Out Clearing. Then, when the bank issues payment on 5-15, go to the Money Out Clearing register and enter the check numbers. Finally, make journal entries to match the withdrawals - debit Money Out Clearing and credit the bank account to match the withdrawals. After doing that, the Money Out Clearing should be $0 if you haven't recorded additional payments in the interim.

Also, be aware that this is only accurate on accrual basis. If your client is on cash basis, the expense will be incorrectly recorded as of 4-29, not when payment was actually issued by the bank on 5-15.

View solution in original post

LouiseG

You can utilize the Memorize Transaction feature in QuickBooks Desktop (QBDT) to establish a recurring monthly entry, ytwiggy. I’m here to provide detailed guidance on how to accomplish this.

The Memorized Transactions feature in QBDT is designed to streamline your workflow by saving time and minimizing data entry errors. By automating transactions, you enhance both the consistency and reliability of your financial records. To set this up, please follow the steps below:

Go to Vendors, then select Bills.
Add the necessary details.
Once done, click the Memorize button on the Edit menu.
Create a name for this, then select and enter the appropriate details.
Once done, hit OK.

If you represent the transaction as a check but aren’t ready to issue it immediately, leave the Check number field empty. Alternatively, you can enter a placeholder such as To Print, which allows you to fill in the check number when you are ready to issue it.

Moreover, you can explore this article to discover how to personalize the templates and their content: Use and customize form templates.

If you have further questions or concerns about creating recurring transactions, please don't hesitate to respond to this post. The Community forum is always available to help.

Rainflurry

@ytwiggy

It's fairly labor-intensive, but you can do it. Create a bank account in QB called "Money Out Clearing". Use that account to pay the bills on 4-29. That removes the bills from A/P and offsets that amount with a negative entry to Money Out Clearing. Then, when the bank issues payment on 5-15, go to the Money Out Clearing register and enter the check numbers. Finally, make journal entries to match the withdrawals - debit Money Out Clearing and credit the bank account to match the withdrawals. After doing that, the Money Out Clearing should be $0 if you haven't recorded additional payments in the interim.

Also, be aware that this is only accurate on accrual basis. If your client is on cash basis, the expense will be incorrectly recorded as of 4-29, not when payment was actually issued by the bank on 5-15.

ytwiggy

Thank you LouiseG for your suggestions.

These payments are not "reoccurring" as invoices from vendors change based on product(s) ordered. Nor will a template help.

But I am intrigued by your suggestion to use the 'To Print' as a place holder and will have to explore this more - So what happens when you Pay Bill but have it sit in the 'To Print' bucket? How does this appear in the Vendor Account as well as the Bank Account?

Another suggested using a 'clearing type of chart of account' like one does with deposits in transit. I can see where this would work, but as that user said - its time consuming and a bit clucky.

ytwiggy

Thank you Rainflurry for your reply

I did think of doing what you suggested, but was a little unsure of all the steps - really appreciate the detail directions. I was hoping for a better way - yes my client is on the cash basis.

I will definitely hang onto your directions but will continue to hope for a better solution. Possibly the one suggested by LuiseG will work....I'm not familuar with leaving checks To Print as unprinted for a period of time so I'm not sure how the chart of accounts will be affected nor how the vendor account will look.

Rainflurry

@ytwiggy

Unfortunately, I'm not aware of any way you can do this in QB if your client is on a cash basis. If you "pay" the bills to reclassify them "To Print", use a clearing account, or anything that removes the bills from A/P, the expenses will hit the P&L as of the date the payments are scheduled (4-29), not the date they are paid (5-15). Obviously, that's not proper cash basis accounting.

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recording prescheduled vendor payments