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Is a paid bill record as an expense?

 
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Is a paid bill record as an expense?

Thanks for posting your concern here in the Community, @ntontat52.

 

I'm here to share some information about recording a paid bill in QuickBooks Online (QBO).

 

There are different ways to record a bill payment in QBO. You can either record the payment to an outstanding bill or an expense.

 

Please note that both are expenses. However, a bill lets you keep track of your costs by knowing all your Accounts Payable. It also represents something you are going to pay for at a later time.

 

On the other hand, an expense is done and paid for in one shot and if the payment has no bill to offset.

 

To record a payment to an outstanding bill, here's how:

 

1. Go to Expenses menu at the left panel, then pick Vendors.
2. Choose the vendor that has the open bill, then locate the bill you'd like to pay.
3. Click Make payment under Action column.
4. From the Bank/Credit account drop-down, choose the bank, then remove the check mark on Print Later.
5. Fill in the Payment date and Amount.
6. Under Outstanding Transactions, put a check mark on the bill you're recording a payment for.
7. Select Save and Close.

 

To record an expense, here's how:

 

1. Click the Plus icon at the top, then pick Expense under Vendors column.
2. From the Bank/Credit account drop-down, choose the bank the payment was made from, then fill in the Payment date.
3. Select the Expense account on the Account column.
4. In the Amount column, enter the payment amount, then Save and Close.

 

For your reference, you may check out this related article for more information (the title may be different but the steps are the same): Record a bill payment processed online, via EFT, ATM, or debit card.

 

That should answer your question for today. Please know that I'm only a post away if you have any follow-up concerns. I'm always here to answer them. Take care!

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