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Buy nowcompany has input purchase order in Quickbooks and create bills for this purchase order. When the company paid for the purchase order in quickbooks, i will select the bill and mark as paid with payment date and method (Debit cash). after i marked the payment as paid. Does Quickbooks automatically create journal entry in system or do i need to create journal entry manually (Dr.:AP, Cr:Cash)?
Thanks for posting in the Community, kelly2024. Let me share some information about creating journal entries in QuickBooks Online (QBO).
We don't have to create a journal entry after marking the bill as paid. QuickBooks Online can record it in your journal entries.
To do that, follow these steps:
However, it's important to keep in mind that journal entries should only be used as a last resort for entering transactions. They should only be used to move money between accounts and balance books in specific ways.
On the other hand, here are the steps to create a journal entry:
With that, it's best to consult with your accounting professional first before making any changes to your accounts. However, if you don't have an accountant, you can find one here in our Resource Center.
For more details about creating journal entries, check out Create journal entries in QuickBooks Online.
Additionally, you can visit this article to learn how to create and review adjusting journal entries: Make adjusting journal entries in QuickBooks Online Accountant.
Let me know if you need further assistance on journal entries and other QuickBooks-related matters. We're always available to assist. Stay safe, kelly2024.
It's obvious @FaithA didn't understand your question.
When you pay a bill (or make a deposit, create an invoice, write a check, record an expense, pay a bill, etc.) QB is making journal entries in the background. You don't need to make a journal entry manually. If you want to see the journal entries that QB makes, you can pull up the bill or bill payment and click 'More' on the bottom-middle of the screen, then click on 'Transaction journal'.
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