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Creating and Using Vendor Records with QuickBooks Online

February 17, 2020

Keep track of your vendors and records of supplies during these difficult times with QBO tools.

You need your supply chains to run smoothly to keep your business functioning at top efficiency. This may be a problem during the coronavirus crisis. To avoid problems in your business, you need to be on top of vendor records.

There are several aspects of the business crisis management that companies need to be on top of today. As Covid-19 has disrupted supply chain, it has had catastrophic effects on many small businesses. Small business loans can help, but keeping you cash flow going as best possible is you greatest hope in these difficult times.

Here we want to highlight the importance of careful tracking of expenses and income with the use of QuickBooks Online. The financial tools available include ways to keep up with vendor records within your supply chain.

Creating Your Vendor Records

First of all, here are the steps for creation of vendor records. Start by hovering your mouse over Expenses on the toolbar and choosing Vendors. The list will display any vendors that you already have added. To create new ones click over New Vendor in the upper right corner of the screen. Add the necessary contact information as well as these necessary fields.

Cost rate/hr and Billing rate/hr

Use these to track project time costs. But, if you pay your vendors by expenses or bills, do not put anything in these fields.


Be sure to specify if bills are due on receipt and if your terms are fifteen, thirty, or more days.

Business ID No. and Account No.

These should be on file and need to be added to these fields.

Track payments of 1099

Check this box for all 1099 contractors.

When you are finished, click Save and the vendor will be added to the list.


Take actions from the QuickBooks’ Vendors page.

Working from the Vendors page in QuickBooks you can see a listing of all vendors as well as their Open Balance, Phone, and Email. At the end of the row where this info is displayed is the Action column. Click that link to go to Make payment or Create bill.

And, to open the list for other options, click the down arrow. When there is a zero balance you are able to Make inactive, Create purchase order, Write check, of create expense. When there is a balance due, you can Create expense or Create Bill. On the upper right of the screen are icons that let you print your list, change column settings or export the list to Excel.

Collecting Billables

There are a couple important settings to make certain that you are no missing any billings. Use the gear icon in the upper corner on the right to choose Your Company Account and Setting and then Expense. You will see these options.

Make certain that you are reimbursed for expense you incur on behalf of your customers. Do this by creating a Billable column on your purchase and expense forms.

Click the first box shown on the image above to add a Customer column to your expense and purchase forms. Click the second box to Make expenses and items billable and, if you wish, put in a default markup rate.

You can also Track billable expenses and items as income. Contact us if you need helping setting this part up. Also, you can set up sales tax here as you would elsewhere in QuickBooks. Finish the rest of the questions under Bills and Expenses and then Save.

As we all work our ways through the current financial crisis, it is important to keep an eye on cash flow and your vendor relationships. Do this by keeping your vendor records current. If any of this is not totally clear, please feel free to contact us at Exigo Business Solutions.

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QuickBooks Online

QuickBooks Online is a cloud-based multi-functional accounting software suite aimed primarily at small and growing businesses. Its versatile framework makes it easy for users to manage and oversee a wide range of accounting tasks, including monitoring cash flow, reviewing transactions, categorizing expenses, checking invoice statuses, and staying on top of payroll and inventory.
Profit First helps you experience profit.

Ronald B. Allen
CEO, Profit First Professional, Fix This Next Founding Advisor
Principle of an accounting firm that’s committed to educating business owners on their financial health, providing a trans-formative strategy and helping them experience their profit!