This article is part of a larger series on Accounting Software.
The process of paying a credit card invoice in QuickBooks Desktop depends on whether you’re reconciling your credit card account. In this tutorial, we’re going to cover the process of paying a credit card invoice in QuickBooks Desktop when you’re reconciling your credit card account and paying without reconciling your account.
To understand each step in this lesson better, we recommend that you follow along in your QuickBooks Desktop account. If you haven’t purchased a QuickBooks Desktop product yet, you can choose from QuickBooks Desktop Pro, QuickBooks Desktop Premier, QuickBooks Enterprise, or QuickBooks Desktop Accountant. We compare QuickBooks Desktop products to help you decide which product is best for you.
We included QuickBooks Desktop Pro in our list of the best small business accounting software. If you subscribe to Pro, you’ll get a 33% discount on your first year of subscription. You can visit the Intuit website to learn more about QuickBooks Pro and the other desktop products.
The following video tutorial is illustrated using QuickBooks Premier, but the process is essentially the same with QuickBooks Pro:
How To Pay Your Credit Card Invoice When Reconciling Your Credit Card Account
While you can write a check to pay your credit card invoice without reconciling your credit card account, we always recommend performing a reconciliation. Reconciling your credit card account before you pay your credit card invoice is a good practice because it allows you to catch potential errors made by your vendor or your credit card company easily. Reconciling your credit card transactions also helps reduce the possibility of fraud in your company.
Paying a card invoice when reconciling your credit card account can be accomplished in two simple steps:
- Reconcile your credit card account.
- Make a payment or enter a bill to pay later.
1. Reconcile Your Credit Card Account
First, you need to reconcile your credit card account. If you’re not familiar with the process, you can check our tutorial on how to reconcile a credit card balance in QuickBooks Desktop. When you have successfully cleared your transactions, click on the Reconcile Now button on the lower left side of the reconciliation screen, as shown below:
When you click Reconcile Now, a small pop-up screen will appear asking how you want to make your payment. You can write a check for payment now (A) or enter a bill for payment later (B). Click on your desired payment option and tap OK. This is where the payment process actually starts:
A. Write a Check for Payment Now
The Write a Check for Payment Now button leads you to the Write Check screen, as shown below. From the Write Check screen, make sure to enter the required information, including the following:
- Bank Account: Select the bank account where you want to pay the amount.
- Print Later: Check this box if you want to create the check now but wish to print it later.
- Pay to the Order of: Enter the name of the vendor. This will be generated automatically by QuickBooks Desktop.
- No.: If you wish to print the check now, make sure to enter the correct number from the check you’ll place in the printer.
- Date: Enter the date when you’re issuing the check.
- Amount: Enter your desired amount. You can enter a portion or the total amount due.
- Address: This field is generated automatically based on the payee information you entered in QuickBooks Desktop.
- Memo (optional): Enter additional information like the purpose of the payment.
- Expenses or Items Tab: QuickBooks will record this payment in your credit card liability account automatically as shown in the Expenses tab.
After entering all information, click Save & Close, and your credit card invoice will be paid. You can check out our detailed tutorial on how to write and print a check in QuickBooks Desktop for more information on the Write Checks screen.
B. Enter a Bill to Pay Later
Now, let’s go to the other option which is to enter a bill for payment later. When you click on the Enter a Bill for Payment Later button, you should see the Enter a Bill screen. From here, you need to populate several fields, including the following:
- Vendor: Enter the vendor for whom you’re paying the bill.
- Address: This field is automatically populated based on the information you entered during vendor setup.
- Date: Enter the date of the credit card statement.
- Ref. No (optional): Assign a unique number to your bill.
- Amount Due: Enter the total amount of the credit card bill that you wish to pay this month.
- Bill Due: Enter the due date of the bill.
- Terms (optional): This is generally not applicable for a credit card bill.
- Memo (optional): Enter additional information, such as ”Bill for October Credit Card Payment.”
- Expenses and Items Tab: As with a check, QuickBooks will record the bill as a reduction in your credit card liability.
Review your entry and click Save & Close.
Paying the Bill
When you’re ready to pay the bill, click on the Pay Bills icon on your QuickBooks Desktop homepage:
From here, you should see the bills that you entered previously:
Simply click on the checkbox next to the bill, enter the date when you’re paying the bill, choose the check method, and enter your company checking account. Tap Pay Selected Bills and your bills will be paid.
So, that’s how you pay a credit card invoice when you’re reconciling your credit card account.
How to Pay Your Credit Card Invoice When You’re Not Reconciling Your Account
If you’re not reconciling your account, follow the steps below:
- Write a check.
- Print the Check (optional).
1. Write a Check
Click on the Write Checks icon on your QuickBooks Desktop homepage:
From the Write Checks screen, provide the required information, such as the bank account, pay to the order of (vendor), and amount. Click Save & Close, and your credit card invoice is paid:
Be sure to choose your credit card account on the Expenses tab.
2. Print the Check
You can choose to print the check now or print it later. Make sure to enter the number of the first check in the starting check number:
There you go—the process of paying a credit card in QuickBooks Desktop. Again, it’s a good practice to always reconcile your credit card account when paying a credit card invoice in QuickBooks Desktop. We hope you found this tutorial helpful!
If you’re considering a switch to QuickBooks Online, be sure to check out our tutorial on how to convert QuickBooks Desktop to QuickBooks Online.