Pay Bills Form Check 1200 QuickBooks Desktop 2023

QuickBooks Desktop 2023 Pay Bill form check. Let’s do it with Intuit QuickBooks Desktop 2023. Here we are in QuickBooks Desktop sample rock Castle construction practice file provided by QuickBooks going through the setup process, maximizing the home page, go into the view drop down, making sure the open windows list is open on the left hand side,


go into the reports drop down opening up the major financial statements in the company and financial profit and loss otherwise known as the income statement, tab, a 10124 to 1231 to four with the range change January to December 2024.



I’m going to increase the font customize in the report fonts and numbers. Change the font. Let’s bring it on up to 12. Bring it on up to 12.



Okay, yes, please. Okay. And then go into the reports drop down one more report. For now, we’re going to go on down to the company and financial and take a look at that balance sheet standard.



Do the date as of 1230 124 there and customize it making the fonts and numbers a little bit larger change in that font to 12? Once again, okay, yes, please. And okay, there we have it, we’re going to then go back to the home page, we’ve



got the home page we’ve been focused in on the vendor center. So we’re thinking about the flow, and the flow for the financial transactions will be shown by the forms, that being the bill form the Pay Bill form.



Note that when we’re paying people, the vendors for QuickBooks representing people that were paying money ultimately going out of the company for goods and services that were purchasing for the use of the company.



The easiest way to set this up would be if we’re paying people not only by cash, but electronic transactions, waiting for them to clear the bank, for example, possibly using bank feeds to enter the check form at that point in time, the next easiest thing we could do is to write physical checks, for example. And then when they clear the bank, we do a bank reconciliation, we’ll talk about the check form and a future presentation.



When using an accrual process, which is what we’re looking at here, we would first enter the bill form, which we talked about last time, which does not impact cash, but instead increases Accounts Payable instead of decreasing the checking account. And then the other side goes to whatever other accounts affected, whether that be inventory or expenses, typically, and then we have to pay off the accounts payable.



That’s where the pay bill will be. Now the pay bill will be you might be saying Well, isn’t that a check? Aren’t we going to pay it off with a check. Because the check form represents not just a physical check, it represents a decrease to the checking account. So yes, we are going to be using checks decreases to the checking account forms, but specific forms which will be showing us that they are not just a check,



but checks that are used to decrease Accounts Payable rather than checks used to buy expenses or assets basically directly. And we can see that if we go basically to the balance sheet over here. And we look at the accounts payable.



If I go on down to the accounts payable side of things which we saw last time, whenever we enter the bill, it increases the accounts payable. If I double click on that change the date range from a 101 to four. So we can see the bills are going to increase the accounts payable as we can see here and double clicking on that there’s an actual bill form that’s increasing the account accounts payable,



the other side went to an expense or an inventory account. And then the check form not just doesn’t just say check, the check does indicate it’s an increase to the checking account. But it says it’s a bill payment check. Which means specifically, if I double click on it still looks like a check.



Because it is a check, it’s still decreasing the checking account. But the bottom half looks a little bit different than other checks. Because it’s basically paying off a vendor that’s useful information to know it’s nice that you can see that right off the bat by showing the type of the form because if I want to know the expense account that’s ultimately affected,



I’ve got to go to the bill that was paid because that’s the one that entered the expense account, or the asset account when I paid the check the other side of the transaction is just decreasing the accounts payable. So in other words, remember this bottom half here.



If I close this back out, close this back out, and then I go into the checking account, the checking account double clicking the checking account, changing the range mo 101 to four then we have this is a bill payment check like the one we just looked at and this is another checks similar form.



If I double click on it still looks like a check decrease in the checking account, but the other side is now listed down Here, kind of like what we saw on the bill form, you got the Expenses tab and the items tab.



And then we listed the account that’s impacted the other side go into an expense, or, in this case, I believe that might be a credit card account a liability directly, as opposed to a payment bill payment check, which we know specifically decreasing the accounts payable.



All right, closing this back out. So as we enter items into bills, we can see that that’s an increase to the accounts payable that we saw last time.



But when I go into this accounts payable, that’s not the way we want to see this information, because this is listing the transaction by date from like a 101 to four listed by date, I want to see by who we owe the money to. So if I list out who we owe the money to, we can do this multiple different ways, and say,



Okay, I’m going to pay my bills, how am I going to sort this out, one way you can sort it out is we can go to the homepage, and we could just simply open the pay bills area in the pay bills area. Notice, what we don’t see is a check type form, because that’s what we saw when we looked at the end result.



And the reason is because you can pay multiple bills using this screen. So this is one way that we can kind of sort the bills that are outstanding. And then we can choose the ones that we want to pay. And we can pay multiple bills using this process at one time, making it a little bit faster.



Other reports that give us similar information, if I close this out the other way, you might do this as you might go to the vendor center, which you can go through here, or you can go to the drop down up top vendors and vendor center.



This means vendors meaning people that we owe money to or people that we have bought stuff from or got services from, we’re going to make this a little bit wider. So now we’ve got kind of a quick list on the left hand side, you can see the balances that show how much is due.



And we can pick individual vendors and take a look at them individually. That’s another way that we could sort out the outstanding bills.



Or we can go to the Transactions tab up top. And we’ve got all of our transactions on the right hand side, I can see all of the transactions and then sort possibly by the bills. And then within the bills, I can see all bills,



I can see open bills. So this is another way that we can see basically the open bills, things that we have entered into the system but have not yet paid things that are impacted the increase in the accounts payable that have not yet gone down.



Because these are open unpaid, we can do the overdue bills, which we don’t have any at this point in time. The other way we can see this.



One more way is I can go to the reports drop down. And I can go to the vendors and payables. And the two reports we typically look at one would be the vendor balance summary or vendor balance detail, I’m going to go into the detail here.



And I’m going to I’m going to I’m going to keep the date range, it’s at the latest date. Now we’ve got the actual vendors, the total by vendor and the activity by vendor.



And this is useful because at the bottom of it, the 26 636 3692 should match opening up the carrot, what is on the balance sheet, what is on the balance sheet. So notice we don’t use that report as much because that’s basically the repeated information you see in the vendor center.



But it does give you that added detail of having the total at the bottom, which we could see ties in to the balance sheet, remembering that all other reports basically other than balance sheet and income statement are giving you more detail expanding on the balance sheet and income statement.



The primary financial statement reports one other report that would be showing the same information, reports drop down vendors and payable would be the AP aging report summary,



we’ll talk more about these in future presentations 1231 to four. But this just gives you the same information by vendor, but it also kind of breaks out the How much is past due or overdue.



And that could be another useful report we also often use for these kinds of outstanding bills that represent the total basically Accounts Payable that ties into what is on the balance sheet.



Okay, so now when we pay the bill, then of course, if I go back to the homepage, if we’re going to if we’re going to pay the outstanding bill,



we’re going to go the main way we would probably do this is go into the pay bills section. And then we can use this screen to sort the bills that are outstanding that have not yet been paid. So let’s just kind of go through this screen.



We got the due on or before so you can choose this feature to set that date on or before we’re going to show all bills as we have here. You can filter the bills by all vendors or you can basically select particular vendors to be filtering by.



You can filter further filter down here if you select a particular vendor, obviously we can check off the ones that we need to be selecting, let’s say all vendors here.



We could check these off You could check off multiple transactions to decide which ones you want to be paid in. And then when you record, the transaction will pay all of them at the same time recording multiple pay, you know, pay bill checks, which are going to decrease the checking account,



the other side goes to the accounts payable, and it will also track the sub ledger, the vendors that were paying to give us the more detail on those sub Ledger’s. Now we could have,



we could be paying a part of the bill for for example, we might say that the amount due is going to be the 122. But we might say that the amount that we’re going to be paying is only like 100. Right? So we’re going to be paying part of the pill.



And so we’ll still have an outstanding balance. In that case, oftentimes, you might be paying the whole thing off. But note, again, you could be paying a partial portion of it. If you want it to go to the actual bill, you can basically, you could select the item up top, and then let’s say go to Bill. And so that shows you the actual bill.



So now we’re drilling down on the source document, this is the thing that increase the accounts payable and record to the other side somewhere to an expense account,



for example. So I’m going to close this back out and we’re back into our pay bill section, I’m going to clear the all the items down below. Now if we have let’s pick one again, let’s pick one here. So we could set a discount or set credits if those are applicable.



And then we have the payment date down below. So this is going to be the date that that obviously we’re going to be making the payment and then the method of the payment, we’ve got the cheque we’ve got the credit card, and a think payment. Now the cheque form in general can be thought of as the form that’s going to be decreasing the checking account,



if you’re actually writing physical checks, then you could buy the checks, you would still need to buy the checks separately, their pre printed checks, because you’re gonna have pre printed numbers on them, which is an internal control. And then you’d have to say, I’m going to print the checks.



And then you want to put the checks into the printer, and basically print out the checks. Otherwise, you can assign the check numbers, when you’re assigning the check numbers, if you’re paying in some other way,



possibly you’re paying by basically writing physical checks and assigning the check numbers or making basically electronic payments, then you wouldn’t have basically the check numbers. Because remember, this is going to be recording multiple transactions,



if you if you select multiple of these items, basically at one point in time, and then of course you could you can pay the selected bills, I’m not going to actually pay them in our practice problem here. And that’s would be the next step.



When you do that you’re going to you’re going to then create multiple then, of those bill payment forms, I’m gonna close this back out and say you have bills,



no, I don’t want to record them. And then if I go back on over and open up the tab here and go into the balance sheet, and scroll down to the accounts payable, double clicking on the accounts payable, and changing the front date, Oh, 10124. Note that you always want to keep in mind, then what’s going to happen to the other side.



Once you enter the transaction, you’re going to have those pay bills, they are going to be decreasing the accounts payable. So if I double click on the accounts payable, or double click on the bill that’s in accounts payable, it looks like a normal check here because again,



it is kind of a check. It’s decreasing the checking account. That’s what a check form basically does. But at the bottom, it’s not assigning it to like an expense account or an asset account. Instead, it’s checking off the related bill.



That’s important to note because if you want to know the ultimate account that was paid for, what meaning would did you pay for utilities



Did you paid for inventory, you got to go back to the actual bill, because that’s the one that ties to the actual expense account that was paid for when this pay bill check was used it’s check, but it was the other side of it’s going to go to a decrease in the liability of accounts payable, closing this back out.



So that’s a nice little tool that they have here that that they’re indicating that it’s a check, but it’s a specific kind of check doing a specific thing, decreasing the accounts payable.



Obviously in the accounts payable, the bills increase the pay a bill decreases. Now if I close this back out, and I compare that to a checking account in the check in the checking account, double clicking the checking account, changing the date from a 101 to four. So this is an actual check form.



And this is a Pay Bill check form. So the other side of the check form, whether it be a check form or pay bill check form will be a decrease of the checking account.



But if I go to a normal check form, that’s not a Pay Bill check forms you can see at the bottom, we’re not checking off the bill that was paid for but instead we got the expenses and items for the account to assign to like an expense account or items like if we were to be purchasing inventory, closing this back out.



Closing this back out once we enter that detail. We can also see that if I go to the to the vendor balance detail, it’s good In a breakout that information by vendor as well.



So we can see now the the Pay Bill form for a particular vendor. And this is a little bit easier to see in here, what really happens in an accounts payable type of account, it goes up with a bill.



And then it goes, it goes back down, when you pay off the bill, right, the accounts payable goes up for this particular vendor, where the bill and then goes back down. That’s what we would expect to happen, you should be able to tick and tie everything out and see what’s increasing and decreasing.



The ones that don’t have a decrease tied to it are the ones that are creating the Indian balance, those are bills that have been entered, which have not been matched out and have not been yet paid for.



And of course, the other way that we track that information would be for example, if a vendor was to call us and say I haven’t received payment, or my my, the amount that you say is owed to us is different or something like that.



Oftentimes, we would go to the vendor center, possibly going to the vendor drop down on top and vendor center. And then you might go to the vendors tab, search for that particular vendor. And then look at the detail on the right hand side and check out and say, Look,



I got the pay bill right here. And then you can basically take it from there. That’s a common kind of way that you might be interacting with the vendors. Or you can you could search by the transactions on the right.



And once again, look at those bills, sorting the bills, possibly by all bills or open bills, the ones that have not yet been paid. And the overdue bills, you can also look at the the bill payments, basically the you know the payment forms, and you’ve got all the payment forms here, if you double click on them, you’ve got those, those basically check forms.



So this would be a way to kind of search in on the decreases to the checking account, but specifically those tied to decreases and the other side going to the accounts payable.



So if I go back to the homepage, you’ve got the Enter bill, increase in the accounts payable other side go into an expense or asset account.



And then when we pay the bill, you’ve got basically a check form decrease in the checking account, but it’s a specific check form the other side going to the accounts payable,



you want to understand the impact on the financial statements. The two accounts that are are affected at least whenever you enter every every transactions, you want to be able to visualize them and then go to the financial statements,



balance sheet income statement and the related reports such as the accounts payable related reports and try to visualize what’s going to happen to the end result. Then drill back down from the end result the financial statements just to get an idea of what is happening firmly. Get a firm grasp of it.


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