 QuickBooks Online, Vendor Expense Purchases or Pay Center. Get ready to start moving on up with QuickBooks Online. Support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. We're going to be using the QuickBooks Online test drive typing into an online search engine QuickBooks Online test drive selecting the item that has into it.com in the URL into it being the owner of QuickBooks. We will be using the United States version of the QuickBooks Online test drive verify we're not a robot and continue zooming in a little bit holding down control up on the scroll wheel currently at 125% zoom in. Remembering that there's a difference between the accounting view and the business view we will be toggling back and forth between them and the cog dropdown. You can switch to the business view we are currently in the accounting view. We're going to be opening up two more tabs to put our reports in doing so by right clicking on the tab up top to duplicate it and then we'll right click on the tab up top again to duplicate it again. As that is thinking I'm going to go back to the middle tab open up our reports which is in the reports on the left hand side in the accounting view open up the balance sheet which should be one of our favorite reports. I'm going to then skip on over to the next tab to the right go to the reports on the left and then open up the profit and loss otherwise known as the income statement. I'll change the date range up top so we're going to actually highlight the date I think the easiest way to do this is to go from 010122 January 1st 2022 two digit numbers no dash no dots. If I hit tab it puts the dashes in there January 1st 22 where they're going to say 1231 222 digit 2 digit 2 digit no dash no dot December 31st 2022 tab and there it is run the report making sure it's updated. Back to the middle tab scrolling up same thing to do on the date I'm going to go from 010122 tab to 1231 222 tab and then run the report. That's the setup process we do every time so we've got our two major financial statement reports back to the first tab. This is going to be where I would enter the data and navigate around any new data being input we then test and see what happens to the major financial statement reports the balance sheet the income statement or profit and loss. So last time we focused in if I hit the plus button on the vendor cycle so we thought about an overview of the vendor cycle which includes these forms involved we thought about the differences between what the cycle might look like. If we have a very easy cashed based system one which were dependent on the banks and then if we have a little bit more difficult cash based system where we have checks. And then if we have an accrual based system where we're entering the actual bills and then paying the bills and then of course inventory complicates things possibly requiring us to add the purchase orders. Now remember the goal of the business is revenue generation or to get paid and the goal of us in the accounting department is to facilitate the financial transactions as easily as possible. So we're going to want to set these forms up as cleanly and efficiently as possible make the payments for what we need as clean and efficient as possible while still managing our money to hold on to it basically as long as possible. From a cash management standpoint and to create the financial statements the balance sheet income statement and related reports. So one of the things we need to do is be able to discuss with our vendors so we might go into these side items over here which we might think of as basically our vendor center. Now in the accountant view you've got it called expenses on the left hand side. So expenses kind of is the vendor area you can think because we're going to be paying the vendors which vendors mean from a specific QuickBooks standpoint the people that we are paying for goods and services. So if we go into the expenses that's those how we're going to record the expense of us paying for the goods and the services. Then up top we have the tabs up top we have an expenses tab. We've got the bills and we've got the vendors. This helps us to kind of sort out the data that we're putting into the system possibly helping us to answer questions after we have entered the form to then think about what the next step might be or to discuss what steps have been taken with a particular vendor or with a supervisor about a particular vendor. Now the other place we're going to work with a lot of kind of expenses or us paying the vendor if we have the bank feeds on is going to be in the banking and information up here. We'll talk about this in its own section or own course in a future section. But these are where the bank feed transactions can come into the system and we either include them in the system recording a transaction or we verify and match them to a transaction we have already recorded. So I'm going to change the views so we could just see the same kind of locations in the business view. So let's hit the cog up top. Let's go to the switch to a business view. And so now we've got the same information but now in the business view if I start off at the home page get things done. We can open up the reports which would be in the business overview and then the reports up top and we opened up in here. We could see our balance sheet and our income statement are there now. If I go back to the get things done just to start from home and then we're going into the the area that's kind of like the vendor center or the expense center. They have it called now get paid and pay so they've combined kind of what I would call like the customer center or invoice center and the vendor center or expense center so we could go into here. And then we have the groups of the overview they get paid in essence the customer center area the customer cycle and then the pay which I would call the vendor center or things related to the vendor cycle. So if we go into here and we go to the actual vendors the vendors being a specific term for people that we are paying if we have any discussions or problems with a particular vendor this is basically where we would go. We're going to go in here and we could sort our transactions by the vendors. So let's close this hamburger up top and just give an overview. Now note that this area becomes more and more important oftentimes as you are on an accrual system as you are entering bills that you expect to pay in the future because if you're paying the bills as you go you basically kind of taking care of the transaction as you receive the bill or request for funds. Although you want to make sure that you're tracking the vendors basically whenever you can because it gives you another field for searching and this becomes important as well. If you're creating your transactions on the outflow of cash side of things on a cash based system using bank feeds then remember the bank feeds on the outflow is usually going to have the dollar amount that goes out and it's going to have the date of the transaction. It will also possibly include like a vendor information in the memo but it won't actually include the vendor. So you've got to take the memo information to create it in the vendor section so that then you have that information that you could sort the transactions by vendor. So you want to make sure to add that level of complexity. If you have outstanding bills then you could sort by the outstanding bills. So up top you got this kind of quick sort item. You've got the purchase orders. You'll recall that the purchase orders if I hit the plus button are the thing that we would have going out before we actually pay for anything if we're buying inventory and before we receive the inventory. So there's no actual financial transaction related to this form. We'll talk more about it in detail later but we still want to track it because now we have an outstanding request. So this is a way that we can order in that fashion. We've got the overdue items. So now we're talking about bills. So when we enter a bill we increase the accounts payable. And if we haven't yet received on the accounts payable now we've got these outstanding bills. So this is kind of a quick sorting format that we have. And then we've got those are the overdue bills that are past due and then we've got the open bills. So these are all the bills that are that are not simply just past due but including all bills that have been in the system waiting to be paid. And then these are the items that are paid in the last 30 days. Now if I want to remove these kind of filters that are automatic I could go up top here and just say clear filters to view all and now we've got all of our vendors. So every time we enter a payment we typically add a vendor and we can go into any particular one of these vendors to see more detail. Before we do just let's take a look at the other kind of items on this area. We've got that prepare 1099s. Now 1099s are going to be something specific to the United States reporting purposes where basically if someone is not a corporation and if they if we pay them over a certain dollar amount which is quite low then we're going to have to add that added burden of issuing a 1099. So we got to go to the 1099 rule for my talk more about that in a future presentation. The bottom line with that though is anytime you're paying like a contractor that's not a corporation you want to be thinking about whether you have to 1099 them. And to do so you'd need their EIN number which is like their company number or their social security number if they don't have one. You probably want to be working with contractors that have an EIN number because it's a little bit easier. And then you've got your new vendor so you could set up a new vendor here or import vendors which we might take a look at in the second half of the course when we create a new company file from scratch. But note most of the time you're probably going to be adding the vendors as you pay for things. So if for example you're entering transactions with the use of the bank feeds I'm going to open up the hamburger. And if we're using the bank feeds we would be in the bookkeeping area under the business view transactions. I'm going to go ahead and close this out and close this out and then down below we have our transactions. Now notice in the description you might have something in here that basically tells you who we paid. But we're going to have to include that in the payee area. Notice they're not always in here. They're often not going to be in there unless there are repeat transactions. And therefore we want to add that level because that allows us to sort. And so notice when we're using the bank feeds we want to make sure that we add that field. Now the other forms that you will typically add with them if you're not using bank feeds. The bank feed itself is creating an expense type of form or you can enter a bill type of form. So if I go to a bill type of form then we could of course add the vendor kind of as we go if we haven't paid this vendor before. And that's usually how you'll add the vendor. Notice that the amount of data you need for the vendor for most vendors is quite minimal. You just want their name oftentimes the utility bill. Who did I pay Edison company. That's all I need to know. I don't need to know who they are. I'm not I'm not I don't have a close relationship with them other than they turn on the electricity and I pay them. But if you're talking about your vendors that you purchase inventory from then you might have a lot more detailed information about you know their location and contact information and so on with relation to them. All right so let's go back into the pay area pay area and the vendor section. So I'm going to close this out for now. If I was to add a new vendor if I go into the new vendor you've got your typical contact information so the required field would be the display name. That's what you're going to be sorting it by over here and then you could go through all the vendor information title first name last name email. This is not required information to record a transaction. It'll be dependent on the type of vendor the address and so on notes and attachments additional information taxes. So if you have tax information related to them this could be crucial depending on who you're dealing with. Do you have to track the 1099. This is where if you're not dealing with a corporation and you're talking about a small contractor like a sole proprietor you're likely are going to have to 1099 them and this is where you could put that information to help you to generate the reports necessary to create those 1099 forms expense rates if applicable and then the terms like if you put a bill in place they're going to pay you in 30 days or something like that. And we'll talk more about those when we are interested entering bills and the default category now this is kind of an interesting one because a lot of times when you enter transactions into the system. You're going to memorize the transactions QuickBooks will memorize it so if you pay like Verizon telephone company one time the next time it'll know to pay the telephone company because you memorize the transaction. But you could say I'm going to say the Verizon telephone company is going to be going to this particular expense account when you set up the vendor. I don't normally do that because it's kind of redundant because like I say after I enter the transaction one time it'll memorize the transaction. But in certain cases this might be a useful technique and you could actually set up slightly different vendor names even though it's going to the same person and assign them to different vendor expense accounts. So that if you're paying the same place like an office supply store for two different things then you can actually set up a different vendor that's assigned to the proper account. And you know that could be a useful tool to to to use sometimes and we'll talk more about that maybe when we get in the bank feed. So do you want to leave without saving I'm going to say yes I do. So then if we go back into here also note if you're doing a trend doing something to these items you could select multiple of these items and then take a batch action like make an invoice or something like that. You could select all of them thusly and then up top we've got the printing information. So if I select that you've got your printing options so you can get a list of this although you're probably better off running a report than this but you can do that. I'm going to close this back out and close this back out and then over here we have the capacity to export it to Excel like a report. And then if I hit the cog we've currently got the the phone number the email but you could include the address and attachments if you want. So now we've got the added detail in the display screen. And normally if you had transactions with a particular with a with a particular vendor you can't really delete the vendor even if you don't expect to have future transactions but your vendor list could get quite long. So you might make the vendors inactive so that when you go in here it's not going to show by default unless you want to see them in which case you can make them active. And now I can see the inactive or see the inactive once by checking that off. You could also increase the amount of rows you want to see which could be useful as well rather than you know paging across. So let's go into a particular vendor good old Bob's burger joint. So we'll go into that and then up top we've got the transactions and the vendor detail. So there's the transactions related to them. So if you so if we have to communication or call with them we have the information here we can sort in this information by the type of activity so we can sort by expenses all bills open bills. Oftentimes when we're looking at vendors information we're going to be sorting by say the open bills or open purchase orders for example or looking for a specific purchase order. We can sort the data by date type payee and so on by clicking on the tops of the columns we can filter the information I just looked at the filter and we also have the editing options up top. So I could make them inactive if I don't expect to do further business in the future with them. I can't delete it but I can make it inactive as we saw and then we could we can merge the contacts if necessary. So if I have multiple contacts I want to kind of merge together and then we've got the transactions. So we've got the time activity bill. This is the same bill as we saw kind of up here bill form. But this time it'll be going to a specific you know this specific vendor bill expense check purchase order vendor. So if I go into any of these items then it's going to it's going to create a bill but it puts the vendor up top. So we got one less step on the data input we might be easier to do from this particular screen. Although again it's quite redundant because you still got the plus button right here and I can add the bill and put the vendor in it fairly easily there. So then we have was trying to get to the edit button we can go into the edit and now we've got the populated information. You can see how little information is populated here even though you have the ability to populate all this information that's quite common for a vendor. Oftentimes you're entering it kind of on the fly as you go and in other words when you're entering a check and you just basically entering the name so you could track the information there. So do you want to leave I'm going to say yes. Now notice the dual nature of the hamburgers up top. I've got this hamburger and this one if I hit this little hamburger then it's going to show this information you know the vendors and I can go back say to the vendor center that way. That's often more useful to do it this way within QuickBooks than hitting the back arrow. Most of the navigation within QuickBooks is better done through the through the buttons within the QuickBooks system rather than using the back arrows. So then I'm going to open this one back up again. And if I I'm still in I'm still in the same area get paid and pay area. And now I'm under the pay section and I'm going to go into the bills. So bills are the things that we enter. I'm going to close this one up. No bills to review. These are the things that are the accrual transaction. So if I hit the plus button when we're paying for something we can either pay with basically just an expense form or check or we can enter the bill which increases and accounts payable which we're going to have to pay with a pay bill in essence to check in the future. So these are the ones that we're going to track oftentimes. Now for review means that we entered a bill but it's going through kind of a bureaucratic process that we need to review the bill right so it hasn't actually entered yet. And then we've got the unpaid bills. So that's usually where we're where we're going to be looking. So when we're thinking about paying a bill we could go to the actual vendors themselves and look at the bills we need to pay but more likely when we're paying a bunch of bills we want to sort the bills. So we might go into the unpaid bills area here and sort the bills that we need to pay by vendor by date by bill and so on and so forth. And then basically pay them off possibly marking as pay over here when we pay them or if we hit the drop down we could schedule payment view and edit make a copy and delete the transaction thusly. Then you've got your items up here for the export to Excel the printing and the cog you can add the columns of the source bill number category class location memo if you so choose. And so I'm going to take obviously that makes it a little more squished up as you add more of the columns but those could be relevant columns to be adding then up top you have the manager reoccurring bills. So if you have a transaction that you want to basically have on a repeat process up top you can set those that could possibly save your time by automating them to some degree. I'm going to go back to the this go back this way to the get paid and pay and then you've got your drop down up top you can add bills you can upload from the computer. If you have like both bills you need to be uploading you can create a bill here which once again is kind of a duplicate area because you can always create the bill with the plus button here or if I have the hamburger closed the plus button moves over here. So we've got the bills so there's multiple areas where that bill is going to be at and create reoccurring bills down below those are the ones that will be repeat that you want to kind of automate in some way. And then if you go to the paid area these are going to be the items you know that have been paid at this point in time so usually when you're sorting around in here you're looking for those items that are unpaid. But you might have a question from a vendor about a bill that's been paid you could filter you could filter them here as well. So I'm going to then open this back up so that kind of these areas get more into the logistics on how we're going to facilitate the transactions and work with our vendors to enter the transactions. And so in the future we'll start talking about the forms that we're going to enter with the plus button and see what the forms do what the actual financial transactions do to do the other goal on the accounting side of things which is going to be the creation of the financial statements as we enter these we want them to link together properly and your bills pay bills discuss with our vendors whether something has been paid or not and so on. And we want to know that these transactions were entering are correctly creating the financial statements the balance sheet the income statement the related reports. Now just a quick look at the accounting view if I hit the cog drop down and switch back to the accounting view because you might be using either of these two views and again it gets a little complicated going back and forth. But we saw that the reports are going to be in the reports area down here and we open them up and the accounting view were in the expenses tab on the left hand side now. And that up top has our expenses in the tab up top. So now we see a fairly familiar layout with them here are our bills. So there's the bills layout that has been our tabs for the unpaid and the paid items there and then our vendors are on the tab to the right so we're kind of housed in this one kind of location. This is to be honest for me the view that's a little bit more apparent to me that I'm more used to. But the other view I kind of you know I kind of like the grouping that they have into it so we're going to keep on going back and forth. I don't know which one's going to win out you would think they would pick one or the other at some point but maybe they've been sticking with both of them for some time now. But no matter what they do to the view the functionality should basically remain the same because the needs are the same. They're just messing with the look and feel the transparency the skin deep layer when they start to change the terms and what not and where they're going to house these different items.