Can you through a PO or an A/P invoice split the amount we pay the vendor in payments over time in the future with specific due dates for each portion of the invoice paid

Hello, rebekkah.

In QuickBooks, you can create split transactions on paying your bills in QuickBooks Online. I can walk you through converting your Purchase order (P.O) to a Recurring Bill so that you can set-up your next payment with specific dates. I also attach a screenshot after every process for your additional reference.

1. In your QuickBooks company, go to the Hamburger icon.
2. Select the +New menu and choose Purchase Order.
3. Enter the details and click Save.

Then, you can create a Recurring Bill transaction. Here's how:

1. Go to the Hamburger icon and select the +New menu.
2. Click Bills under the Vendors column.
3. Enter the Vendor's name and you will see a pop-up P.O will appear on the right pane of the page.
4. Click the Add button of the P.O.
   
   
   
   
5. Select Make recurring which you can see at the bottom.
6. Enter the Template name and fill in the details base on your preferences.
   
   
   
   

Here's how to Pay the bill:

1. Go to the +New menu and select Pay bills.
2. Look for the Recurring bill you created.
3. Enter the amount you paid under the Payment column.
4. Click Save and close.

For more information about recurring bill transaction, please check out: How to set up a recurring bill.

In the future, you can check the breakdown of the split transactions of your bill in the Reports menu. Here's how to access.

1. Go to the Hamburger icon, and select the Reports menu.
2. Search for the Bills and Applied Payments Report.
3. Customize the report based on your preference by clicking the Customize button.
4. Verify and hit Run Report.

Please know that I'm just a few clicks away if you need further assistance. Take care always.

@MarsStephanieL  I'm working with Rebekkah and have further question.  In the method you describe, will the PO be for the full amount and then the payments be subtracted from that.   The goal is to expense the full amount of a PO or more appropriately the full amount of  an AP invoice, but pay it over time in installments.   So the expense is recognized all in the month it was incurred and from that point it's just an A/P which reduces as each payment is made (so cash reduces).  

So that's the key for us.. to be able to expense the total amount of the bill in the month it was incurred but paid over time (only affecting cash and A/P).

Thank for your help!

@MarsStephanieL   I am working with Rebkkah and have another important question.  We need to recognize the full expense in the month it was incurred.   So we need to enter an invoice for the full amount and create an A/P  and then be able to make payments on a schedule.  

The key is that we recognize the expense in the month incurred and then be able to make payments against that invoice (reducing A/P and reducing cash as the payments are made).

Ideally we'd like to be able to schedule those payments against the invoice over potentially 12 months and then just select the payment due each month when we pay bills.

Thanks for you help

-Larry

Hello, @lmaligie.

With regards to  your concern, I recommend to create a bill for the entire amount (in the back ground it affect the expense account and increase A/P) then record the payments of the bill per month (A/P and bank will be the one affected).

Lets start with creating a bill, here's how:

1. Go to the New icon, under Vendors column select Bill.
2. On the Vendor drop down, select the vendors name.
3. Make sure to check the date, then enter all the need information.
4. Once done, click Save.

To make payment with the Bill you created:

1. Open the bill, Click on Make payment under the amount.
2. On the Bank/Credit card drop down, select the bank where payment should be associated.
3. Check on the date,then click Save and Close.

You may also want to know o how to record a bill payment by EFT, ATM card, or debit card, feel free to read this article: Record a bill payment by EFT, ATM card, or debit card.
 

Drop a comment for additional questions, I'm always here to answer.

@Joseph_A thank you.  Can these payments on the bills be scheduled in advance by date?

Thanks for getting back to us, lmaligie.

Yes, you can schedule an advance date for your bill payments. Just make sure to add notes in them to keep you reminded about those transactions in QuickBooks.

Upon sharing this, I still suggest consulting with your accountant. He/She might have specific instructions on how to handle those bills and payments based on your case.

Feel free to read this handy related article for additional information: Enter and pay bills.

Let me know if there's anything else you need. Just tag my name, and I'll get back to you.

Thank you and take care always!

@rebekkah      @MaryLandT  Hi Mary, I'm uncertain where this is accomplished.  Here are the steps I'd like to see.

1) Create a Bill for the total amount from the vendor (recognizing full expense and AP)

2) Create 12 equal payments with 12 due dates in the future with one payment per month

3) View a report showing payments due this month

4) Be able to select the payment due for this particular month for payment

5) produce a check for this payment

6) Automatically reduce the A/P amount

Is this possible?  If so can you please outline the steps.  The solutions provided above is great but I don't seem to find the specific answer I'm looking for. 

Thanks for your reply, lmaligie.

I've got some steps that may help you with your concerns. For the first question, yes, you can create a bill for the total amount. This automatically affect the A/P account and just make sure to select the expense account from the Category column. Please see this sample screenshot:

With regard to the 12 equal payments, you can record multiple expenses with the corresponding amount. Then, manually apply the expense to the bill each month or apply them at once.

Here are the steps:

1. Go to + New > Expense.
2. Select the vendor's name from the Payee drop-down.
3. Add the Payment account, Payment date, and Payment method.
4. In the Category column, select the Accounts Payable account and enter the payment amount for that month.
5. Click Save or Save and close.

Once done recording the expenses, here's how to apply the expense as a payment to the bill:

1. Go to Expenses > Vendors.
2. Select the vendor's name, find the bill and click Make payment under the Action column.
3. Put a check mark on the expense for that month and click the Print check link located at the bottom or Save and close.

I've a sample screenshot here for reference:

After recording the payment, check the Open balance under the New transaction drop-down in the vendor's page.  

To view all transactions recorded for this vendor, you can run the Transaction List by Vendor by following these steps:

1. On the left panel, click Reports.
2. Type Transaction List by Vendor in the search field.
3. Select the Report period and click Run report.

If you have any additional questions, you can always get back to me. Take care. 

@RenjolynC  Thank you for your response.  In that scenario you presented, when the original bill is created for the full amount, what would be entered for the "Due date" since this bill will be paid in 12 payments, one due each month?  Perhaps the due date would be the 12th month when the last payment is due?

Thanks for getting back to us, @lmaligie.

When you create the original bill for the full amount. You'll have to enter the 12th month when will be your last payment date. This way, you can track your transactions in QuickBooks.

Once done please proceed to the steps provided by my colleague @RenjolynC on how to manually apply the expense to the bill.

I'm adding our Help articles page it provides topics that might help you in the future.

Reach out to me if you have any other questions as I'm always here to help. Take good care.