QuickBooks Pro Plus desktop 2020 to pay bills form check, get ready because it’s go time with QuickBooks Online 2022. And we are online in our browser searching for the QuickBooks Online test drive, we’re going to be locating that test drive, we’re going to verify that we are not a robot and continue Little do they know that I’m sitting here with see Threepio. But any case, we’re now in the Craig’s design and landscaping, I’m going to hold down Ctrl scroll up a little bit to get to that 125%.
We’re also opening up the version that we got from the free 30 day trial that has the business layout on the left hand side as well. Going back to the landscaping. So back to the landscaping in a prior presentation. If I hit the drop down, and the New button, we talked about the entering of the bill, the next natural step would be to pay the bill. So just a quick recap, remember that if we enter a bill, the bill form means specifically that there’s going to be an increase to the accounts payable,
we would only be entering a bill form. If we’re on an accrual basis. If we were not on an accrual basis, when we receive an actual bill, not the bill form, but a bill for goods and services that we have received, then we could pay it with an expense form or cheque form these two forms decreasing the checking account directly the bill form, meaning more specifically Bill form means that the accounts payable is going to be going up.
Once we’ve entered the bill form, the next natural step is that we’re going to have to pay it at one point in time we’re going to pay the bill, this will be the next form that’s going to be decreasing the accounts payable the other side, decreasing the checking account, it’s just the same kind of form type as a check or expense, except for the fact that it’s specifically saying the other side is going to be a decrease to the accounts payable as opposed to a check and Expense Type form, which our decreases to the checking account.
But we’re going to be assigning some other transactions or some other side there, as opposed to the other side directly go into the accounts payable. So let’s open up our balance sheet and our income statement. This is going to be our standard type of practice. I’m going to duplicate the tabs up top going to the tab up top right clicking on it, duplicating it as that is thinking, I’m going to go to the tab to the left, right click on it again, duplicate again.
Now I’m going to go to the tab in the middle. This is where I like to see my balance sheet. So I’m going to scroll down to the balance sheet to go down to the reports. And then we are in the reports when the standard area, you’re going to scroll down to the reports. And this will always be in the favorites because these are our two favorite reports balance sheet, the income statement, going to change the date range up top by going from a 101 to one to hit Tab 1231 to one and then tab,
then I’m going to run that report to refresh the dates. So there it is down there. And I’m going to go to the next tab to the right. And we’re going to go to the reports again. So we’re going to go to the left hand side down to the reports open up our other favorite report that being the income statement, scrolling down finding the income statement, otherwise known as the profit and loss, or the P and L, changing the date range up top from Oh 101 to one to 1231 to one, run that report.
So there we have the income statement, we’re going to go back to the balance sheet. And we’re focused now on the accounts payable. So recall that last time when we entered the information, that’s when we impacted the the income statement because we entered something that might have an impact on the expense, and then the accounts payable with up.
Now we’re going to decrease the accounts payable, and we’re going to record the other side is going to go to the checking account, they’re gonna hold CTRL down and scroll up a little bit. I’m going to close the hamburger up top.
So the checking account is going to be going down and the accounts payable is going to be going down down below. Now note you might be thinking well if the checking accounts going down isn’t that when I record an expense, not if you’re using an accrual component which the accounts payable is if you’re using accounts payable, you’re using you’ve added in an accrual component.
That means that we recorded the expense not at the point in time that we actually paid something out of a checking account, but at the point in time that we enter the bill into the system. Now that we’re paying the bill, no impact on the income statement. So then we’re going to go back to the first tab. Now there’s a couple different ways we can track this accounts payable to know which bills that we need to pay.
So I’m going to go back to the left hand side, hold down Control, scroll back down to that 125%. One way would be to go into the vendor center or the Expenses tab. And we can track by the Open items. So I got the expenses up top. I can filter them here. I can filter by the Open items by the bills, and then possibly by the bills that are open or overdue. And that’ll give us one indication of the bills that need to be paid with the Pay Bill form typically.
And the other way we could do it is we might go to the vendors tab tab on the right hand side. And we might then Sort the vendors with our little filters up top by the Open bills here, that also gives us the open bills that we need to actually pay. The other way we can do it, I’m going to make another tab. To do this, I’m going to right click on this tab and duplicate this tab, we can go directly into the pay bill item with the plus button up top, and then we could go into the bill and then the pay bill is right underneath it,
this doesn’t look like a normal form, it doesn’t look like a check form here, because it’s giving you another kind of sort layout that we can basically sort the bills that are outstanding, and then pay those bills. So we can pay them with an account up top right now they’re got the MasterCard, we might pay typically with a checking account. And then we got the payment date, which is typically going to default to the current date for starting check number if there are check numbers, if they’re not actual checks, and you’re paying electronically, then you could remove the check number here, if you’re going to be printing these bills,
you could tick off multiple bills at one point in time, then you would have the physical checks that would be outside or you purchase them separately, you’d have to then put into the printer and print to those checks, then we have the detail down below sorting, we could sort by the payee. By clicking here, we could sort by the due date, we could sort by the Open balance and so on. And then we have our filtering options here. So we could have the due date, we have the periods that are here.
And then we can sort in more in depth with the filters by by the payee, which might be more useful. Of course, if we had a lot of bills that would be outstanding. Obviously, the larger the company is, the more that this Accounts Payable feature, the more sorting that’s going to be there and the more you can be focused in on the cash management strategies, you can then sort and pick multiple bills, or you can pick all the bills by clicking this item up top, which would select all of the items.
And then you have the option down here once they have been selected to save it, save and print if you’re going to be printing them to actual checks, or save and close it. Now once we enter these items, I’m going to close this back out or let’s let’s keep it open. And if I then go and I deconstruct some of these bills, let’s imagine that we have the Pay Bill,
what’s the pay bill going to do? A Pay Bill means it’s going to make multiple forms. Because we could make multiple of these forms at the same time, it’s going to decrease the checking account and the other side is going to go to Accounts Payable, those two accounts impacted. Let’s go then to our Craig’s design and landscaping on the balance sheet I’m going to hold CTRL down scroll up a little bit,
we’re in the accounts payable if I go into the accounts payable, now we’re at the end the source, the end document that’s been created, we’re drilling back down clicking on it, taking us to in essence, the general ledger holding ctrl scrolling back down, so I could see the balances on the right hand side. Notice the only accounts are the only transaction type forms, the form types that are in here are bills to increase it, check forms to decrease it, if I go into this check form,
I do not go into something that looks like what we saw on the left hand side specifically, it might look a little bit different over here, if I go on to the right hand side, because it looks something more like a cheque type of form, which would be the form that decreases the checking account because it is in essence a cheque type of form, except that on the bottom here, instead of having the expense category or the other account that we would be affecting, it’s checking off the bill that’s going to be impacted.
So we’ve got the payee here, we’ve got the the checking account, that’s going to decrease the checking account, the mailing address, and so on, and then the amount and then we’re checking out the bill that it’s been applied to now if I click on this bill, it will actually take me to the bill, that was the source document. So when I go to the actual bill, this is showing us the expense account that actually was impacted, it also shows that the bill has been paid up top.
So notice that if you have an accounting kind of background, you can think about this from the accounts that are impacted. But when you when you take it a level further for the accounting process within an accounting department accounting system, we would like to be able to track these bills and be able to see an indication that they the bill has been paid, Bill has not been paid in addition to the detail and the transactions that are going to be made to build the financial statements.
So and that’s going to be that’s why we That’s one reason why if you have an accounting background, you start to think about things in terms of debits and credits. And you might want to do things with journal entries. You might say, hey, these forms are not transparent enough. I have to kind of know what this forum is doing. It’s not telling me which accounts are debited and credited specifically, I have to know that the bill form is increasing the accounts payable on the other side is going over here.
That’s harder than just entering a journal entry if I know debits and credits, but you want to use these forms because you get that added level it forces you for example, to have the subsidiary ledger broken out by forcing you to add a vendor. It also ties out the forms so that we can sort by the forms that have been paid or not paid link in the form to the pay formed items.
So if I close this back out, we’re back to then our transaction detail. I’m going to scroll back to the right, I’m going to go back to my prior reports, not by hitting the back button up here. But by hitting this back to report item, I’m inside of the website, as I’m doing my navigation. That takes us to our accounts payable here.
Now the other side is up here on the balance sheet. So if I go up to the checking account, and we’re basically just writing a check, we could have written multiple checks, if I go into that account, then we’re into what I would call the general ledger, because it’s sorting out the information by date, they call it the the transaction detail, or the transaction report gives you a little bit more detail with the transaction types, and so on and so forth.
Now the checking account is going to have more kind of stuff in it more transaction type forms than any other item, because the checking account is the lifeblood of the company. It’s involved in the vendor cycle, the revenue cycle and the employees cycle. But if we scroll down here, we say, Okay, I’m looking for a Pay Bill type of form, there’s one, there’s a Pay Bill type of form, it’s decreasing.
So if I go into that, I know what I’m going to see, I’m going to see, in essence, a check kind of form, decreasing the checking account, because we’re in the checking account, and the other side is going to be connected to a bill, as opposed to go into an expense down here.
If I want to know the expense that was ultimately impacted, I can then link to the bill, which shows that it was paid by that Bill form, and they put it to miscellaneous expense demo and miscellaneous something, is it an expense form? Yeah, other expense. So if I close this back out, so now I’m back in this report, I’m going to go back to the prior Well, let’s let’s also take a look at a normal check. So notice this is a build check form.
Let’s compare that to like a normal check form, drilling down on a check form it also decreasing the checking account, it’s going to look similar up top, it’s decreasing the checking account. But down below, instead of having it tick and tie out to a bill form, you have it timeout to an actual expense down below because we’re expensing the actual category, instead of us paying off a bill that we had entered in the past.
So in other words, if this had going through the bill kind of situation, you would have entered the bill that would have increased at the accounts payable and recorded to this automobile fuel expense. And then we would have paid it with a Pay Bill decrease in the accounts payable and decrease in the checking account.
Instead, we got the bill and paid it directly with basically a cheque which which decreased the checking account directly. And it went to the expense account bypassing the accrual component of the accounts payable. So if I close that back out, the expense form is kind of the same thing. We’ll talk about this form later. But that’s also a check type of form, in essence without a check number, because possibly it’s from an electronic transfer.
So you got the same kind of thing as decreasing the checking account looks very similar, it’s not going through accounts payable. So at the bottom here, it’s going to just basically a account on down below, closing this back out. And of course all this detail with the pay bills, you can also check once it has been paid by going to the vendor center in the first tab. And then you can look at the vendor details.
So once these bills have been paid, you can go into the particular vendor for the person that you have paid. And you’ll find you know, the bill and the Pay Bill, again, that more detailed type of transaction here, you can hide the this on the left hand side. And you can hide this carrot on the left hand side as you’re going into these items. So just getting used to the navigation that you’re going to be using here, you can hide that, I can open this back up.
And then when I want to go back to the prior screen, I’m going to use this item, I’m going to really not go up to this browser tab, I’m going to be using the internal functions of the website and go back here. If I want to open up the hamburger, I can go back up top. Now the other place that you’re going to see this detail, when you do the paybill it the other way you can see kind of this information down below is by having the report. So I’m going to go to the vendors section.
And just so I have another tab I’m going to close this out. And do you want to leave without saving? Yes, I do. And and this time, let’s go to the reports. And we saw that we have all these reports that are going to be supplemental to basically the accounts payable, that’s going to be people that you owe, so we got who owes you that’s kind of like the accounts receivable, and then the sales and then what you owe, that’s kind of the accounts payable.
And we’ll get into these reports later. But the most basic one is like the vendor balance detail and the vendor Balance Summary. Let’s get into the vendor balance detail. And let’s let’s close the hamburger I’m going to make the date range custom date range to end on 1231 to one and run it. Hold CONTROL.
I’m scrolling up a little bit. So now we see this information and you can see kind of a detail of the bill that has been paid. Now these are the outstanding ones the bills that have not yet been paid. If I want to see the activity that has been paid as well. I can go up top and say look, I want to customize this report. We’ll get into more of this later on. But we can go down here and say I’d like to customize this. And I want to see AP paid information here as well.
So we’ll move that up and save, run it, run it. And so now we’ve got our bill information, hold on a second, let me do that, again, customize, we’ve got the AP paid now included, but I only got the unpaid. So I’m gonna hit the drop down, and I want to see all items, and then run the report. So now we’ve got the activity. And this is what you would expect to see by by vendor, the bill going up, and then it’s paid.
That’s what you expect to see. It’s easier to see here on IT vendor by vendor transaction, you enter the bill and you’re paid the bill. So we got the bill, we got to enter a bill we paid the bill still owe that to 4123. Here we’ve got two bills, enter the bill, enter the bill paid, the bill paid the bill back on down to zero.
So that’s the activity that you would expect to see you only got the two types of forms basically in the accounts payable, and it’s easier to tick and type out the activity of entering the bill and paying the bill when you’re looking at the ledger that’s breaking out by vendor as opposed to the full accounts payable, which has the same kind of thing, but that has all the activity in it. So that’s going to be the Pay Bill form and we’ll continue on with the next kind of forms in future presentations.