Categories
Bill Vendor Vendors

How to set up vendor payment term where all bills are due month-end of the following month? For example, April vendor bills are due on 31st of May.

To setup “Term” in new QuickBooks Online:

From the homepage screen

  • Select the Company Gear (upper-corner)
  • Select “All Lists” under Lists heading
  • Select “Terms”
  • Select “New” button
  • New Term screen will open

Name = Due following month end (or name as needed)
Select “Due following month end”
Enter “31” day of month
Under Due the next month if issued within
Enter “31” days of due date
Save

See screenshot for reference.

Note: Term will apply to both Vendors and Customers.

Due following month end
Due following month end
Categories
Vendor Vendors

How to post payment against a vendor before invoice received?

If you are trying to post payment by CHECK against a vendor/supplier before invoice received, see this will work for you.

From the home page screen

  • Select Create “+” sign (upper-middle)
  • Select Check form under Vendors
  • Select Vendor/Supplier and provide other information
  • Select Account = Account Payable Under Account Details header
  • Save

This will leave credit balance against that vendor/supplier on Accounts Payable account. So, you will to enter actual expense bill to clear this credit A/P balance.
If you are paying by credit card or debit card, the whole process is the same. Just choose “Expense” form under Vendor header.

Pay Vendor by Check b4 Invoice
Pay Vendor by Check b4 Invoice
Vendor Center Advance Payment
Vendor Center Advance Payment
Categories
Vendor Vendor Credit Vendors

How do I add a credit for a vendor (supplier) without any open bills? I also like to see this credit in Vendor’s Center.

It involves three steps process.

Step # 1
Issue Vendor Credit
(+ sign > Vendor Credit under Vendors)
Make sure to use the same account originally used

Vendor Credit
Vendor Credit

Step # 2
Deposit refund to the bank
(+ sign > Bank Deposit under Other)
Received From = Vendor’s Name
Account = Accounts Payable (A/P)

Deposit
Deposit

Step # 3
To clear A/P as Bill payment (step # 1 and step #2)
Why step# 3 > step # 2 bank deposit does not apply to specific bill
select Vendors > locate Vendor > click “Make Payment” button, far right > Bill Payment screen will open with zero amount> Save and Close

Bill Payment
Bill Payment
Categories
Bill Chart of Accounts Check Expense Expenses Reports Vendor Vendors

How to set it up and enter bank Line of Credit (LOC) transactions in new QuickBooks Online?

To track a line of credit (LOC) extended to your business, create a liability account with an opening balance of zero in your Chart of Accounts.

Chart of Accounts
Chart of Accounts

From the Home page screen

  • Go to the Company Gear (right upper-corner)
  • Select Chart of Accounts under Settings header
  • Select blue “New” button (right corner)
  • New “Account” information screen will open
  • Category Type = Other Current Liabilities
  • Detail = Line of Credit
  • Name = Line of Credit (or Chase Line of Credit if preferred to name the bank)
  • Description Line of Credit (or same as name)
  • Balance = Leave opening balance as “0” (zero even if you’ve already used LOC and has balance. It’s better to enter transaction later.)
  • Click “Save” button
Add new LOC account
Add new LOC account

To record (for example $100,000.00) the LOC extended to your company and deposited to main Checking account:

Bank Deposit
Bank Deposit

From the Home page screen

  • Go to Create “+” sign (top middle)
  • Deposits under Other header
  • Ensure the proper Deposit to account is selected (in this example, Chase Checking Account)
  • Date = Enter bank posted date
  • Go “Add New Deposits” section
  • Received From = Chase LOC Payment (Add New as Vendor if needed)
  • Account = Line of Credit (Select the “Line of Credit” account just created as “Other Current Liabilities) from the Account drop-down arrow)
  • Description = For example, Chase line of credit deposited to Chase Checking Account
  • Payment Method = Bank Online or appropriate (add new if needed)
  • Ref Number = Enter last four digits of LOC number (optional)
  • Amount = $100,000.00
  • Attachments (paper clip icon) = Upload picture of related document (if available)
  • Click “Save and New or Save and Close” blue button

This entry will show you have added $100,000 as deposit to Chase Checking Account and $100,000 as liability to Chase LOC account.

loc deposit
loc deposit

To record just interest charges (in this example $500 interest charges) applied to the LOC by your financial institution:
See instructions below for making Principal and Interest Payment.
From the Home page screen

  • Select blue navigation bar on the left
  • Select Transactions
  • Select Registers
  • Locate Line of Credit Account register
  • Double click Line of Credit Account
  • Liability for Line of Credit screen will open
  • Enter the date of the interest charge (for example 4/30/2014)
  • Financial institution name where the line of credit is held as the Payee (in this example Chase LOC Payment)
  • Enter the interest charge in the Increase column (in this example $500.00)
  • Choose Interest Expense account from the “Account” drop-down arrow
  • Enter “Memo” as Interest Expense for the period (in this example for April, 2014)
  • Click Save
Record Interest Expense
Record Interest Expense

To record a repayment of the LOC and/or payment of interest charges:
(In this example making $5,000 LOC payment from Chase Checking Account ($4,500 principal and $500 interest)

From the Home page screen

  • Select Create “+” sign
  • Select “Expense” (if paid Online) or Select “Check” (if issued Check) under Vendors header. In this example, we are making online payment.
  • Click the LOC Account as Payee from drop-down arrow (“Chase LOC Payment” in this example)
  • Choose the bank account you want to make payment from (“Chase Checking Account” in this example)
  • Expense Date: = Payment Date (for example 4/30/2104)
  • Payment Method: = Bank Online
  • Under Account Details, click the drop-down arrow and choose the “Line of Credit” account (Other Current Liabilities type),
    Under Description = Principal Payment
    Under Amount = $4,500.00
  • On the second line, Under Account Details, click the drop-down arrow and choose the “Interest Expense” account (Expenses type),
    Under Description = Interest Payment
    Under Amount = $500.00
  • Make sure total payment is $5,000.00
  • Attachments (small paper clip icon, bottom left): Upload photo of LOC statement. Optional but recommended.
  • Click Save and New or Save and Close button
LOC payment
LOC payment

To enter a payment that has been made directly from the LOC to a vendor, where no bills have been entered:
In this example, we are making $10,000 payment to Simon Manufacturing for purchased materials.
From the Home page screen

  • Select blue navigation bar on the left
  • Select Transactions
  • Select Registers
  • Locate Line of Credit Account register
  • Double click Line of Credit Account
  • Liability for Line of Credit screen will open
  • Enter the date of the purchase (for example 4/30/2014)
  • Name of Vendor Payee (in this example Simon Manufacturing)
  • Enter the amount in the Increase column (in this example $10,00.00)
  • Choose Purchases Expense Account from the “Account” drop-down arrow
  • Enter “Memo” as Buying Materials (for example XYZ job)
  • Click Save

NOTE: This transaction will not show up on Vendors Center record. For to show transaction recorded on Vendors Center, see three-steps process below.

LOC purchases
LOC purchases

To pay bills where funds have gone directly from the line of credit to the Vendor Entered Bill as Accounts Payable:
This involves three steps process.

Step # 1 Enter Vendor Bill

Enter Vendor Bill
Enter Vendor Bill

From the Home page screen

  • Select Create “+” sign
  • Select “Bill” under Vendors header
  • Select Vendor = Simon Manufacturing
  • Date = 4/30/1014
  • Under Account Details column, select Account = Purchases Expenses Account for example
  • Amount = $10,000.00
  • Click Save and Close button

This entry will created Accounts Payable balance of $10,000.00 to Simon Manufacturing’s account

Step # 2 Write Journal to show payment to Vendor by LOC

Journal Entry
Journal Entry

From the Home page screen

  • Select Create “+” sign
  • Journal Entry under Other
  • Enter the date (for example 4/30/2014)
  • On the first line, click the Account drop-down arrow and select Accounts Payable
  • Under the Debit column, enter the amount ($10,000 in this example) you paid the vendor
  • Enter a memo such as “Paid from line of credit”
  • Under Name, click the drop-down arrow and select the vendor you paid (“Simon Manufacturing” in this example)
  • On the second line Under Name, click the Account drop-down arrow and select the line of credit account (“Line of Credit” in this example)
  • Under the Credit column, enter the amount you paid the vendor ($10,000 in this example)
  • Enter a memo such as “Paid from line of credit”
  • Click Save and Close
Journal Entry for Purchase Payment
Journal Entry for Purchase Payment

Step # 3 Now you need to link the bill payment to the vendor credit paid by LOC:
From the Home page screen

  • Select Create “+” sign
  • Select “Pay Bills” under Vendors header
  • Under Pay to the Order of, select the vendor name (Simon Manufacturing)
  • Under Choose an account for Bank, Select Bank Clearing Account (Add new if needed. This account will always have zero balance.)
  • The screen will refresh and you’ll see a matching amount under Credits and Bill Payment Information.  Click the checkboxes so the amounts match.
  • Leave the amount blank as “0.00” zero. It’s “In and Out” entry, so amount should be zero
  • Click Save and Close button

This entry will clear Accounts Payable and will show payment transaction on Vendor Center.

Apply LOC payment to vendor 1
Apply LOC payment to vendor 1

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Categories
Vendor Vendor Credit Vendors

How do I record negative (credit) Vendor (Supplier) Bill in new QuickBooks Online?

Vendor Credit Form
Vendor Credit Form

How do I record negative Vendor bill?
If it’s for vendor’s (or supplier’s) credit bill:

  • Click Create “+” sign in the middle (see attached screenshot below for reference)
  • Select “Vendor Credit” under Vendors
  • It will leave credit balance on Accounts Payable under Vendor’s Name.
Vendors Credit
Vendors Credit

New QuickBooks Online Plus – How to enter various expenses in new QBO?

QuickBooks Online (QBO) Tutorial – Customer Invoice, Sales Receipt, Receive Payment, Bank Deposit

Categories
Vendor Vendor Credit Vendors

Where to enter credit for returned items or purchases in new QuickBooks Online?

(1)  Try “Vendor Credit” form (from create “+” sign > Vendor Credit under Vendors header) If you are using “Enter Bill” form to enter vendor bill and returning to the same vendor, you could use Vendor Credit form. It will show negative Vendor balance.


(2)  For returning credit for Credit Card purchases > use Credit Card Credit form 


(3)  For returning credit for Debit Card purchases (or purchases paid by check) > use Make Deposits. In new QBO, they do not have Debit Card Credit or or Check Credit Expense Credit form at this time. There is a known problem using Make Deposits feature. It will not show up in the Vendors center. This is a huge known problem in new QuickBooks Online.

Return Credits
Return Credits

Categories
Bill Vendor Vendors

Why isn’t Quickbooks Online noticing when same Vendor Bill is entered twice?

Duplicate Check Bill Warn
Duplicate Check Bill Warn

Why isn’t Quickbooks Online noticing when same Vendor Bill is entered twice?

It isn’t picking up the invoice number has been entered before….Is this a bug or something you have removed? It used to give us a notice that the bill has been entered.

From the Home page screen

  • Go Company Gear
  • Select Company Settings under Settings heading
  • Select Advanced
  • Choose Miscellaneous

▣  Warn if duplicate check number is used On

▣  Warn if duplicate bill number is used On

New QuickBooks Online Plus – How to enter various expenses in new QBO?

QuickBooks Online (QBO) Tutorial – Customer Invoice, Sales Receipt, Receive Payment, Bank Deposit

Categories
Check Expense Expenses Vendor Vendors

What is the different between Expense form and Check form under Vendors heading in new Quickbooks Online?

Vendors - Enter expenses paid by debit card, card card, ATM, enter bill, pay bill
Vendors – Enter expenses paid by debit card, card card, ATM, enter bill, pay bill

Check form is to record written manual checks or to enter computer checks to be printed. This entry will reduce bank balance.
Expense form is to record all banking withdrawal type transactions except Check.

New QuickBooks Online Plus – How to enter various expenses in new QBO?

QuickBooks Online (QBO) Tutorial – Customer Invoice, Sales Receipt, Receive Payment, Bank Deposit

Categories
Vendor Vendors

How to clear Vendor unpaid bills paid by other party or other loan payable account?

It involves one additional entry.

Open new “Bank Clearing Account” under Bank type

Go to Pay Bills (+ sign > Pay Bills under Vendor Heading)
Select Payment Account = Bank Clearing Account
Select Hand-written check (Starting Check No.) = some payment reference number (or Loan from..)
Click Pay Bills button

Next step is to write a journal entry to clear Bank Clearing Account and to reflect payment from loan account.

Debit the Bank Clearing Account and Credit the Loan Payable to Jim Smith account.

QBO pay bills with clearing account
QBO pay bills with clearing account
Categories
Transactions Vendor Vendors

How to automatically recall expense account when writing check?

In QBO, they have “Pre-fill forms with previously entered content” rather than specifically selected expense accounts to Pre-fill like in QB desktop version.

From home page screen, select Company Gear (top upper corner)
Select Company Settings under Settings
Select Advanced
Select Automation
Select Pre-fill forms with previously entered content
Double click to edit “Pre-fill forms with previously entered content” from “Off” to “On”
Click Save and Done
They have different QBO versions floating around, your selections may vary slightly.

See attached screenshot below for reference.

Pre-fill forms with previously entered content
Pre-fill forms with previously entered content