How to Pay Bills in QuickBooks Online

Feb 1, 2022
How to Pay Bills in QuickBooks Online

How to Pay Bills in QuickBooks Online

If you create a bill transaction, you must eventually relieve that bill by using a pay bills transaction.

The most important thing to remember about bills is if you create one, you must record a pay bill transaction to record the payment of that bill. Do not use a check or expense transaction to record payment of a bill entered in QuickBooks Online. If you do, accounts payable is overstated on your balance sheet and expenses are too high on your income statement.

The three ways to pay a bill are:

  • Use +New at the top of the left navigation bar and select Pay bill
  • Open the Vendor Center and select the Make payment option in the far-right column of each vendor’s listing
  • Open the Vendor Center -> open a vendor profile -> locate an open (unpaid) bill -> select the Make payment option in the far-right column

Don’t forget to enter the payment account as well as the date. If you are partially paying any bill, enter the payment amount because it is less than the full amount outstanding.

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