Bill payment

Let me share some information about paying bills in QuickBooks Onlne (QBO), Arunpremji.

The bill transactions will show up as a negative expense if you haven't applied them to a payment yet. Once you pay the bills, the bill-payment will display a positive amount on both Account Payable (A/P), and into the bank accounts transactions when running vendor reports. Here's how to pay your bills through the Pay bills window:

1. Click the + New icon. 
2. Under Vendors, select Pay Bills.
3. Choose the Payment account and enter or verify the Payment date. Use the account from which you pay the bills. To pay one bill from different accounts, or to record separate payments on different days, just enter each partial payment separately.
4. If you select a checking account, verify or change the Starting check no.
5. Tick the checkbox for each bill to pay.
6. Enter the amount of the payment to be applied to the open bill. If available, you can specify the amount of any credit to apply in the Credit Applied column.
7. Press Save and close.

You can also pay the bills through checks, just follow the steps and details in the Enter and pay bills article. Then, proceed to Pay your bills through checks section. 

On the other hand, Check or Expense report a transaction as an expense and a payment simultaneously. For example, if you bought supplies at Office Depot and immediately paid for them, record the transaction using Check or Expense. This allows you to skip entering and paying bills because there's no money owed to Office Depot. To learn more about this one, see What is the difference between bills, checks, and expenses? article. 

Feel free to visit our Expenses and vendors page for more insights about managing your vendor transactions on your account.

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Have a great day. 

If for a particular bill payment some bank charges are associated (transfer fee). When I add the bank charge to the bill payment amount box, it is showing as credit amount.

Kindly assist how should I enter bank charges associated bill payment in QB online.

Hi there, Arunpremji.

Thank you for coming back and providing additional information. When you add an extra amount to the original bill amount on the Pay Bill page, this will show as an available credit.

I'd suggest creating an expense transaction for the bank charges associated with bill payment in QuickBooks Online. With this, you'll need first to create an Expense account for the bank charges/fees.

Here's how: 

1. Click the Gear ⚙ and select Chart of Accounts.
2. Select the New button.
3. In the Account Type dropdown menu choose an account type.
4. From the Detail Type dropdown, select the detail type that best fits the types of transactions you want to track.
5. Give your new account a name. You can use the info under the detail type to add a name that fits.
6. Fill in all the needed information on the Account page.
7. Select Save and close.

For additional information, you can click this article: Add an account to your chart of accounts in QuickBooks Online.

Once done, you can now create an expense entry for the bank charges and use the expense account you've created. Please follow the steps below.

1. Go to the +New button.
2. Select Expense.
3. Choose the Payment account.
4. Choose an expense account Category to link the charge to.
5. Enter the amount and fill out the rest of the form as needed.
6. Click Save and close when ready.

For more details, you can check this article: Enter, edit, or delete expenses in QuickBooks Online. This also provides information on how you can make any changes to the expense you've created.

Please refer to this article on how you can run a report that will reflect all payments made to vendors: Run a report with vendor totals.

Please let me know if you have other concerns. I'm just around to help. Take care!