QuickBooks Accounts Payable is a feature that automatically adds transactions to your accounts payable balance sheet anytime you enter a bill. QuickBooks uses this account to track the money that you owe. When you enter or pay a bill for a vendor, QuickBooks records the transaction in your Accounts Payable account.
Your accounts payable balance sheet use this account as “Accounts Payable.” If you need to use multiple numbers of this type of account in your business, you can add additional “accounts payable” accounts to the sheet. When you have multiple accounts payable account, QuickBooks lets you pick the account you want to use when you enter or pay a bill.
The workflow of QuickBooks Accounts Payable-
In this section, you will learn about the importance of using the accounts payable feature instead of writing a check for your business expenses. The QuickBooks Home page and Vendor Center, respectively, make managing all your purchasing activities easy.
Your Home page workflow might vary, depending on the version of QuickBooks you are using and the preferences you have enabled.
To perform typical vendor-related activities from the QuickBooks Home page, you will need to follow these steps:
- First, you must navigate to the Vendor Center.
- Then, you will need to create a purchase order for the vendor.
- Next, you will have to enter bills against inventory.
- Enter a bill regarding the vendor.
Pay the bill (typically within the agreed-upon payment terms for that vendor; for example, 30 days from the bill date).
How to create a Vendor Credit?
To practice creating a vendor credit, open the sample data file. If you are working in your own file, use these instructions to begin entering credits you receive from your vendors:
- Firstly, click on the Enter Bills option located on the Home page.
- Then, click on the Credit option located at the top of the Enter Bills dialog box.
- Now, type in the name of the vendor and press the Tab key on your keyboard to advance to the Date field.
- If you are practicing, accept the prefilled date. In your own file, you can select the date from the calendar.
- Enter an optional memo. If you want the memo to display in reports based on your expense lines, be sure to use the memo field in the Expenses tab or the Description field on the Items tab.
- You can add additional lines or change the account if required.
- Finally, click on Save and Close to end the procedure.
How to pay Vendor Bills?
One of the benefits of entering vendor bills is that you can record the expense during the month you incur it, but pay the balance owed at a later date. If you are ready to pay your bills, make sure that you have a vendor bill or some record of the expense being incurred. Develop a process at your business for accurately reviewing your unpaid bills.
To practice paying a vendor bill, open the sample data file. If you are working in your own file, use these instructions to begin paying the bills you owe your vendors:
- To begin with, click on the Pay Bills option on the Home page.
- Next, you will need to leave the Show All Bills option on selected.
- Use the Pay Bills dialog box to record payment by check, credit card, or online payment to your vendor.
- After that, select the C.U. Electric option or begin typing in the name in the Filter located next to the drop-down list.
- Review the options provided in the sort by the drop-down list, but leave the Vendor selected.
- Click to place a checkmark next to each of the bills for C.U. Electric. QuickBooks will create one check for the two selected bills if you are printing checks.
- Now, click on the Go to Bill button with a selected bill. QuickBooks opens the Enter Bills dialog box where, if necessary, you can make modifications. Click on the Save and Close option to return to the Pay Bills dialog box.
- You can specify payment options in the Payment section of the Pay Bills dialog box when working with your own data.
- Click on the Pay Selected Bills option. QuickBooks opens the Payment Summary dialog box.
- Review the details displayed in the Payment Summary dialog box including payment date, account, and method.
- Click the Print Checks button on the Payment Summary dialog box. Optionally, you can click the Pay More Bills button to return to the Pay Bills dialog box or click Done if you do not want to practice printing (using plain paper).
- If you selected the Print Checks button, the Select Checks to Print dialog box displays. Leave selected the default Bank Account and the prefilled First Check Number.
- Review the list of checks to be printed. Each will have a checkmark in the column to the left. Remove the checkmarks from any checks you do not want to print at this time.
- Click OK to open the Print Checks dialog box. Select your printer from the Printer Name drop-down list, and then choose the proper Check Style from Voucher, Standard, or Wallet.
- Finally, you must click on the Print option to complete the process.
And that’s about it!
We hope that this article has helped you in gaining a better insight as to the functions and overall purpose of QuickBooks Accounts Payable. In case you have any further queries, feel free to contact the QuickBooks Enterprise support number 1-805-257-5030.