QuickBooks Online 2021 pay bill that was created from a purchase order or P OE. Let’s get into it with Intuit QuickBooks Online 2021. Here we are in our get great guitars to practice file, we’re going to open up a new tab to the right and make the trial balance on it.
Right click on the tab up top, we’re going to be duplicating that tab, we’re going to go down to the reports on the left hand side reports left hand side, then type into the search area for the trial balance the good old TB report trial balance, trail balance, no trial balance, it’s not a trail, but a trial, not a trail but a trial range, change it up top to 1231 to 112 31 to one, run the report, close up the hamburger hold down Control scroll up just a bit to get up that one to 5%.
So what we’re going to do is enter a bill. But we’re just want to track the process of that bill as it took place. So if I go back to the desktop version, you don’t need the desktop version.
To follow along, we’re just taking a look at the flow chart within the desktop version. we’re imagining that situation where we had a vendor that came in, or a new customer, I should say that came in, they asked for a guitar that we did not have yet, we said we would purchase it from them or for them from a vendor setting up a new vendor with the purchase order here a request for the inventory, applying that customer to the process of the purchase order not because the vendor needs that information, but so that we can track it through as we go.
Then we said that we got the inventory from Fender, which was our new vendor, and therefore we populated the bill with the purchase order that was received. So then we populated the actual bill that came into play.
And as we entered the bill, we also entered the customer to it as a billable item so that we can then go down and create the invoice, jump into the invoice side of things and pay the and get the revenue from the customer. When we entered the bill, then of course the bill was an increase to the accounts payable, and the other side then went to the inventory item.
So notice if you think about the flow, then for the bill, you got two two line items, as we can see here, we got the bills down below the bills up top. If you’re buying inventory, then of course, what’s going to happen as you enter the bill, when we enter the bill, it’s going to be increasing the accounts payable just like any kind of Bill form wood.
And the other side instead of going to an expense type of area, which is often what we do with the the track down below is going to go to inventory because we’re tracking basically the inventory which will later be expensed in the form of cost of goods sold when we sell the inventory typically with the form of the invoice or the sales receipt, that’s kind of different than the bill down here.
And we could use this bill form too. But notice down here on this track, we’re typically thinking about those types of bills that are kind of like non inventory type of items, right, the normal month in type of bills that we’re going to enter, oftentimes the other side of this bill, meaning this is a bill two, so it’s going to increase the accounts payable.
But oftentimes the other side go into an expense, like the telephone, utility, electric, and so on and so forth on this side, although we might use this bill form to purchase assets, such as property, plant and equipment, or something like that as well. So just noting those two kind of tracks that we have.
So we’ve already done the purchase order for the customer, we track the customer through, we got the inventory recorded the inventory with the bill increase in the accounts payable, we actually already then created the invoice for the customer then based on the information that process through from the purchase order to the bill. And now we’re going to be just paying off the bill which is kind of like the normal process that a bill will go through.
Going back to our QuickBooks Online file. Let’s go to the first tab. Let’s then go down to the expenses tab down below just to track this in here. We’re going to then close up the hamburger for now. Let’s go up top, hold down Control, scroll back down to that 100%. And I’m going to go first to the event to the expenses tab on the left hand side. And just consider this process. This was for the fender items. So you’ll recall we had a purchase order here for a Fender that we purchased these items.
And then they came and we entered a bill and we populated the bill from the purchase order. So these two forms look much the same. And then we turned around to the customer cycle down here to the sales cycle. And if I look at all transactions up top, I’m going to go to all transactions. Then we created an invoice, the invoice that was basically linked to, to and I believe it was this invoice was populated through the bill that was was added as well. So that’s going to be our process. Now we’re going to pay off the bills.
So if I go back to the expenses cycle, we’re still left with this bill that’s outstanding that we can then pay we could pay it from here by hitting the drop down and say we want to say Schedule a payment, we can go to schedule a payment, or we could go to the vendors tab, we could go down to our new vendor, which is vendor go down to the new vendor, which is vendor.
And we see that we have once again, the outstanding bill that we could pay here, or we could go to the drop down up top, and we could go to the vendor section and say we want to go to pay bills. So pay bills, this will sort all the bills that we basically have, it’s going to come out of a checking account, we’re going to write the check as of let’s say, I’m going to say oh 223 to one, if it’s a check, then we’ll populate the check here that could either be printed by putting, you know pre printed checks in the printer, or that it could be mirroring a checkbook that we have all that we’re populating off out of QuickBooks, right, and then we’re just matching it up here.
If it’s not a cheque or some other kind of electronic payment, then you would want to put something other than the check number here so that you’re not overriding the check number, then we’re going to select the fender item. So there we have it, and we’re going to pay the full amount of the 3003 60. What’s this going to do? Well, it’s a pay bill item, so we’re going to be decreasing then the accounts payable, that’s what the pay bill does. And the other side is going to be going a decrease to the checking account or to cash.
Now this is going to happen with basically a check type of form. But it will populate specially as a bill paycheck type form, which will be a good indication that will tell us Hey, this went to the accounts payable or decrease the accounts payable. If you want to know the account that was hit there was actually paid for like the expense account or the asset account, then you got to go to the bill itself rather than the pay bill form, or the form of payment.
Let’s go ahead and save it and close it and then check it out. So we’ll save it, close it. And then if I go back to the first or the second tab with a trial balance and run that report, again, hold down Control, scroll up just a bit to that one to 5%. We paid it out of the checking account going into the checking account here to check it out. Checking out the checking, we see down we have the 228 that’s not the one we want. We have the pay bill, here’s the pay bill with the check 1013 for fender and we paid it with that 3003 60.
Now notice, once again, it’s a check, but it’s a special check. It’s the pay bill check. If I click on it, then we’ll be able to go back to the data input screen, which is going to be the pay bill item. The fact that it is a pay bill item tells us that we got to go to the actual bill, if we no want to know the expense account that’s affected. And this does have a link to that bill.
So then we can go ahead and link up to that bill and see that yes, this was an item that was paid for inventory, we actually purchased the inventory items of the Squire guitars, 20 of them, closing this back out and scrolling back up top, we’re going to go back to our our trial balance, then the other side of this is going to go to the accounts payable. So the accounts payable here now back down to zero selecting it.
We see that in the inventory that we purchased here with the bill and then we paid the bill that’s going to be the standard process with the accounts payable, it goes up and then like it goes back down. bill goes up when we enter a bill and then it goes down when we pay the bill also for tracking this in the vendor detail over here.
And we went to save the expenses side of things went to the vendors tab and we wanted to check out what’s happening for Fender, which is our newest of our vendors, the newest of our vendors being Fender we could see them the activity over here as well. So we had the purchase order the bill and then the pay bill that took place. So back on over to the trial balance.
This is where we stand at this point I’ll run the refreshing of it just to make sure it’s fresh. I think it already was fresh but just double check. This is where we stand at this point in time. I’ll be printing these out so you can check your work after each of the presentations.