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RLH3
Level 1

Purchase on Interest free credit

I have QuickBooks Online and I have bought an Apple Monitor from a store on interest free credit.  How do I record the receipt and how to I show that it is being paid back in instalments over 18 months?

Solved
Best answer October 14, 2022

Best Answers
MaryLandT
Moderator

Purchase on Interest free credit

I'm glad to have you back, RLH3.

 

Since you've already entered a bill, you can record the payment once you pay it. 

 

You may also use the recurring bill in QuickBooks Online. This feature allows the system to create bills automatically based on the scheduled date. Check out this article to learn more about the process: Create recurring transactions in QuickBooks Online.

 

Also, in QuickBooks Online, you can easily record the loans, assets bought with the loans, loan payments, and depreciation of the assets. That being said, I'm leaving these articles to help you track the Apple Monitor you've purchased in QuickBooks.

 

 

Upon sharing this, I still suggest consulting your accountant. This is to ensure your transactions and reports are recorded correctly in QuickBooks.

 

Get back to me if there's anything else you need by commenting below. I'll be right here to answer your questions.

View solution in original post

5 Comments 5
DHeraV
QuickBooks Team

Purchase on Interest free credit

Good day, RLH13,

I can surely help you out! For this, we can create a bill to record your receipt and then use the Pay bills feature to track if it's being paid in installments.

To create a bill, follow these simple steps:

1. Go to the +New tab.
2. Select Bill. From the Vendor dropdown, select a vendor.

3. From the Terms dropdown, select the bill's terms. This is when your vendor expects to be paid.

4. Enter the Bill dateDue date, and Bill no. as they're recorded on the bill.
5. Add the bill details in the Category details or in the Item details section. 
6. Enter the Amount and tax. 
7. Select Save and Close.

After creating the bill, you can track the payments by creating Pay bills. To do this:

1. Go to the +New tab. Choose Pay bills.
2. From the Payment account dropdown, select the account you paid the bill from.

3. Enter the Payment date.
4. Select the checkboxes for the bill(s) you made a payment towards.

5. In the Payment column, enter the amount you paid toward each bill. 
6. Select Save.

For more information, you can visit: Enter and manage bills and bill payments in QuickBooks Online

Additionally, I'll add articles that you can read later on to learn more about bills, checks, and expenses in QuickBooks Online.


Don't hesitate to reach us back or you can simply add a reply under this post if you need more help with managing your bills. We'll be happy to accommodate you. Have a great day!

RLH3
Level 1

Purchase on Interest free credit

Hello

 

Thanks for that information but I don't seem to have bills on my version of Quickbooks, I only have the option of adding a receipt or an expense. 

Rea_M
QuickBooks Team

Purchase on Interest free credit

Thanks for the update, @RLH3.

 

Let's check your QuickBooks Online (QBO) version and upgrade your subscription if necessary so you can manage your bills and expense transactions accordingly.

 

Based on your description, you may be subscribed to the Simple Start version of QBO. That's why you're unable to create bills. With this, let's go to the Accounts and Settings page to verify and upgrade your plan (if necessary) to suit your business needs. This way, you can manage bills and stay on top of what you owe. Here's how:

 

  1. Sign in to QuickBooks Online as a primary or company admin.
  2. Go to Settings ⚙ and then Account and settings.
  3. Select the Billing & subscription tab.
  4. Make sure your payment info is up to date.
  5. In the QuickBooks Online section, view your current plan. If you want to upgrade from Simple Start to Essentials or Plus, select Upgrade your plan.
  6. Review the available plans and then select Choose plan.
  7. Follow the on-screen steps to upgrade your plan.

 

You can read this article for the complete information about managing your QBO plan: Upgrade or downgrade your QuickBooks Online subscription.

 

Once you're done, go to the + New button and create your first bill transaction. You can refer to this article for the step-by-step guide: Enter bills and record bill payments in QuickBooks Online.

 

Also, you may want to check out this article as your reference to guide you in learning the difference between bills, cheques, and expenses in QBO: The difference between bills, cheques, and expenses in QuickBooks Online.

 

Let me know if you have other concerns about managing your QuickBooks subscription and recording expense transactions in QBO. I'll gladly help. Take care, and I wish you continued success, @RLH3.

RLH3
Level 1

Purchase on Interest free credit

Hello

 

So I have upgraded the Quickbooks subscription and added the invoice as a bill.  However I now need to pay the bill over the next 18 months via direct debit - how do I show this in quickbooks?  It seems like it needs to go as a debt that is paid back over 18 months so it has a reducing balance.

MaryLandT
Moderator

Purchase on Interest free credit

I'm glad to have you back, RLH3.

 

Since you've already entered a bill, you can record the payment once you pay it. 

 

You may also use the recurring bill in QuickBooks Online. This feature allows the system to create bills automatically based on the scheduled date. Check out this article to learn more about the process: Create recurring transactions in QuickBooks Online.

 

Also, in QuickBooks Online, you can easily record the loans, assets bought with the loans, loan payments, and depreciation of the assets. That being said, I'm leaving these articles to help you track the Apple Monitor you've purchased in QuickBooks.

 

 

Upon sharing this, I still suggest consulting your accountant. This is to ensure your transactions and reports are recorded correctly in QuickBooks.

 

Get back to me if there's anything else you need by commenting below. I'll be right here to answer your questions.