Entering Bills into QuickBrooks Online

Accounting

• 
  Roger Caywood 1 year, 5 months ago

  Entering Bills into QuickBrooks Online

  Regarding the impact to the Financial Statement when you enter a bill. It states that the accounts are affected when the bills are entered. What if you don’t actually pay the bill for a couple of weeks after entering it into QB, closer to the Due Date for example?

  Thanks,
  Roger.

  #177132 Reply
  1 Reply
  
  Crystalynn Shelton
  

  Participant

  

  1 year, 5 months ago

  Hi Roger, good question! The financial statements are impacted when you enter the bill and when you pay it; regardless of “when” it is paid. Below, I have included the debits and credits that are created in QuickBooks for both scenarios:

  Enter A Bill: affects the Profit & Loss and the Balance Sheet reports
  Debit Expense or Asset you have purchased
  Credit Accounts Payable

  Pay A Bill: Only affects the Balance Sheet Report
  Debit Accounts Payable
  Credit Cash (Bank account the money was deducted from)

  The purpose of entering a bill before the due date is so that you can always know how much money you owe to vendors and suppliers, also known as your accounts payable balance.

  I hope this clears up any confusion. If not, feel free to reach back out with additional questions.

  All the Best-
  Crystalynn Shelton

  #177727 Reply
  1 Reply
• Author
  Posts