Using the Vendor Center in QuickBooks
Entering Bills in the Vendor Center:
Select the "Enter Bills" task. It will bring up a screen that looks like a check.
Enter the following in this screen:
- The vendor name,
- date of the bill,
- bill number,
- due date,
- and account that bill is being charged to,
A word of caution: watch the date you put into the bill as the date of the bill. Many clients enter the date the bill was received on. It should be the date on the original bill. This is especially important for accrual based taxpayers.
This screen is also where you would enter a credit you received from vendors. To complete this task in the enter bill screen, select the credit button.
Paying Bills in the Vendor Center:
Notes & Words of Caution:
- Words of caution: if the business has more than one checking account, make sure the one that the correct account is showing under the pull down menu.
- the "Go to Bill," "Set Discount," and "Set Credits," optional buttons. These enable users to view the original bill, set a discount (if offered) and set a credit to the bill (if available)
- Checks (if this is the method of payment), can then be printed.
- If using laser checks to pay the bills, make sure you are using voucher checks compatible with the QuickBooks accounting software.
Accounts Payable Aging Summary Report:
Use this report to identify:
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Which vendors you still owe money to,
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How much you owe,
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And how long your balances have been owed.
Understanding how long you owed a balance to a vendor is a great way to improve your cash flow. This enables you to track the time between when you're invoiced and when you pay your bills. Which in turn can help to identify ways to save money or negotiate payment options with vendors. Not to mention it aids in identifying how to prioritize which bills to pay.
Conclusion: