When you have entered bills in QuickBooks you have finished the time-consuming part of the work. In this part, we show you how to pay the bills. Because many vendors in the Kansas City area offer discounts for early payments or credit for returned merchandise, you want to make sure that your QuickBooks is set up to automatically handle these and other useful adjustments.
In our newsletter last month, we noted that two distinct sets of actions are needed to pay bills in QuickBooks. We covered the requirements for entering bills and how to create reminders to avoid overlooking specific bills. In this part, we will cover how to actually pay bills.
As you will recall, the first thing to do is go to the home page and click “Enter Bills” or choose “Enter Bills” on the “Vendors” menu. You will see an image of a bill. Choose a vendor on the drop-down list and fill in the rest of the fields in the box at the top. Be sure that “Amount Due” shows up on the lower part of the screen under the “Items” tab or the “Expenses” tab and that all fields are correctly filled in before saving the bill.
When the bill has been saved, it is available when on the home page when you click “Pay Bills.” When you click to pay bills you will a window like this.
A Screen with a Table Like This One Will Open When You Click “Pay Bills”
First, you will choose “Bills to Be Paid” by selecting a date range or by choosing “Show All Bills” and picking all the bills that have not yet been paid. Use “Filter by Field” to pick all vendors or pick a specific one. Or, use “Sort by Field” to arrange the list by the amount to pay, by an alphabetical list, by vendors, or several more choices.
Now choose the bills that you want to pay. It may take more than one set of selections depending on the payment methods used for various vendors. We suggest that you choose the bills in batches that match how you are going to be doing this.
Click the checkbox to the left of each bill that you wish to pay, or you can click the checkbox for “Select All Bills” at the bottom of the table. A table with several columns will appear. Parts of the table will be filled in with information like the amount due and reference number that you entered when you entered the bills in the first place. Other information has to do with credits and discounts. If, for example, you have an early payment discount or credits for returned merchandise or early payment you will see these providing that you have set up QuickBooks to automatically apply them to your bills.
Note: You can set up this option if you are the company administrator. Open up the edit menu, choose Preferences/Bills and, with an active “Company Preferences” tab, click the checkboxes by “Automatically Use Credits” and “Automatically Use Discounts.” Then choose the appropriate “Default Discount Account.”
If you need help setting this up feel free contact us today.
Now we are at the final steps in paying bills via QuickBooks. Enter the “AMT. TO PAY” at the end of each row.
When you have chosen “All Bills” or picked several bills with the same payment method, you need to go to the lower half of the bill-pay screen which will be similar to this.
These are last steps in Paying Bills via QuickBooks
At this point, if you need to see the original form you can click “Go to Bill.” Make sure now that “Terms” and “Payment Date” are correct. You can even “Set Credits” and “Set Discount” from this page but don’t do that until you are sure how to do it correctly and if you need help, let us know.
Choose a payment method. Depending on the method you choose, you will see changes in the account and options on the right. When you have finished picking a method of payment, click “Pay Selected Bills.” If there is any “follow-up” work finish that as well.
The QuickBooks process for paying bills is an excellent feature but it can seem a little complex when you start out. We are pleased to help any business in the Kansas City area with paying bills in QuickBooks or by looking at how to maximize your profit with approaches like Profit First. Please feel free to take advantage of our QuickBooks ProAdvisor services to make sure that you can do this task without problems.