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?
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-
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