 QuickBooks Desktop 2023. Pay Bill Form Check. Let's do it within Tuits QuickBooks Desktop 2023. 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 then 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 here we are in quickbooks desktop sample rock castle construction practice file provided by quick books going through the setup process maximizing the home page going to the view drop down making sure the open windows list is open on the left hand side going to the reports drop down opening up the major financial statements in the company and financial profit and laws otherwise known as the income statement tab 010124 to 1231 to 4 with the range changed january to december 2024 i'm going to increase the font customize in the report fonts and numbers change the font let's bring it on up to 12 bring it on up to 12 okay yes please okay and then go into the reports drop down one more report for now we're going to go on down to the company and financial and take a look at that balance sheet standard do the jit date as of 1231 to 4 there and customize it making the fonts and numbers a little bit larger change in that font to 12 once again okay yes please and okay there we have it we're going to then go back to the home page we've got the home page we've been focused in on the vendor center so we're thinking about the flow and the flow for the financial transactions will be shown by the forums that being the bill form the pay bill form note that when we're paying people the vendors for quickbooks representing people that were paying money ultimately going out of the company for goods and services that were purchasing for the use of the company the easiest way to set this up would be if we're paying people not only by cash but electronic transactions waiting for them to clear the bank for example possibly using bank feeds to enter the check form at that point in time the next easiest thing we could do is to write physical checks for example and then when they clear the bank we do a bank reconciliation we'll talk about the check form in a future presentation when using an accrual process which is what we're looking at here we would first enter the bill form which we talked about last time which does not impact cash but instead increases accounts payable instead of decreasing the checking account and then the other side goes to whatever other accounts affected whether that be inventory or expenses typically and then we have to pay off the accounts payable that's where the pay bill will be now the pay bill will be you might be saying well isn't that a check aren't we going to pay it off with a check because the check form represents not just a physical check it represents a decrease to the checking account so yes we are going to be using checks decreases to the checking account forms but specific forms which will be showing us that they are not just a check but checks that are used to decrease accounts payable rather than checks used to buy expenses or assets basically directly and we can see that if we go basically to the balance sheet over here and we look at the accounts payable if I go on down to the accounts payable side of things which we saw last time whenever we enter the bill it increases accounts payable if I double click on that change the date range from 010124 so we can see the bills are going to increase the accounts payable as we can see here and double clicking on that there's an actual bill form that's increasing the accounts payable the other side went to an expense or an inventory account and then the check form not just says doesn't just say check the check does indicate it's an increase to the checking account but it says it's a bill payment check which means specifically if I double click on it still looks like a check because it is a check it's still decreasing the checking account but it the bottom half looks a little bit different than other checks because it's basically paying off a vendor that's useful information to know it's nice that you could see that right off the bat by showing the type of the form because if I want to know the expense account that's ultimately affected I've got to go to the bill that was paid because that's the one that entered the expense account or the asset account when I paid the check the other side of the transaction is just decreasing the accounts payable so in other words remember this bottom half here if I close this back out close this back out and then I go into the checking account the checking account double clicking the checking account changing the range from 0101 to 4 then we have this is a bill payment check like the one we just looked at and this is another check similar form if I double click on it still looks like a check decrease in the checking account but the other side is now listed down here kind of like what we saw in the bill form you got the expenses tab and the items tab and then we listed the account that's impacted the other side go into an expense or in this case I believe that might be a a credit card account a liability directly as opposed to a payment bill payment check which we know specifically is decreasing the accounts payable all right closing this back out so as we enter items into bills we can see that that's an increase to the accounts payable that we saw last time but when I go into this accounts payable that's not the way we want to see this information because this is listing the transaction by date from I go 0101 to 4 listed by date I want to see by who we owe the money to so if I list out who we owe the money to we can do this multiple different ways and say okay I'm gonna pay my bills how am I gonna sort this out one way you can sort it out is we can go to the home page and we could just simply open the pay bills area in the pay bills area notice what we don't see is a check type form because that's what we saw when we looked at the end result and the reason is because you can pay multiple bills using this screen so this is one way that we can kind of sort the bills that are outstanding and then we can choose the ones that we want to pay and we can pay multiple bills using this process at one time making it a little bit faster other reports that give us similar information if I close this out the other way you might do this is you might go to the vendor center which you could go through here or you could go to the drop down up top vendors and vendor center this means vendors meaning people that we owe money to or people that we have bought stuff from or got services from going to make this a little bit wider so now we've got kind of a quick list on the left hand side you can see the balances that show how much is due and we can pick individual vendors and take a look at them individually that's another way that we could sort out the outstanding bills or we can go to the transactions tab up top and we've got all of our transactions on the right hand side I could say all all the transactions and then sort possibly by the bills and then within the bills I can see all bills I can see open bills so this is another way that we can see basically the open bills things that we have entered into the system but have not yet paid things that are impacted in the increase in the accounts payable that have not yet gone down because these are open unpaid we can do the overdue bills which we don't have any at this point in time the other way we can see this one more way is I could go to the reports drop down and I can go to the vendors and payables and the two reports we typically look at one would be the vendor balance summary or vendor balance detail I'm going to go into the detail here and I'm going to I'm going to keep the date range it's at the latest date now we've got the actual vendors the total by vendor and the activity by vendor and this is useful because at the bottom of it the 26 6 30 6 36 92 should match opening up the carrot what is on the balance sheet what is on the balance sheet so notice we don't use that report as much because that's basically the repeated information you see in the vendor center but it does give you that added detail of having the total at the bottom which we could see ties in to the balance sheet remembering that all other reports basically other than balance sheet and income statement are giving you more detail expanding on the balance sheet and income statement the primary financial statement reports one other report that would be showing the same information reports drop down vendors and payable would be the AP aging report summary we'll talk more about these in future presentations 1231 to 4 but this just gives you the same information by vendor but it also kind of breaks out the how much is passed to or overdue and that could be another useful report we also often use for these kind of outstanding bills that represent the total basically accounts payable that ties into what is on the balance sheet okay so now when we pay the bill then of course if I go back to the home page if we're gonna if we're gonna pay the outstanding bill we're gonna go the main way we would probably do this is go into the pay bills section and then we can use this screen to sort the bills that are outstanding that have not yet been paid so let's just kind of go through this screen we got the due on or before so you can choose this feature to set that date on or before we're going to show all bills as we have here you can filter the bills by all vendors or you could basically select particular vendors to be filtering by you can filter further filter down here if you select a particular vendor obviously we could check off the ones that we need to be selecting let's say all vendors here we could check these off you could check off multiple transactions to decide which ones you want to be paying and then when you record the transaction it'll pay all of them at the same time recording multiple pay you know pay bill checks which are going to decrease the checking account the other side goes to the accounts payable and it will also track the sub ledger the vendors that were paying to give us the more detail on those sub ledgers now we could have we could be paying a part of the bill for for example we might say that that the amount due is going to be the 122 but we might say that the amount that we're going to be paying is only like 100 right so we're going to be paying part of the pill and so we'll still have an outstanding balance in that case oftentimes you might be paying the whole thing off but note again you could be paying a partial part of it if you wanted to go to the actual bill you could basically you could select the item up top and then let's say go to bill and so that shows you the actual bill so now we're drilling down on the source document this is the thing that increased the accounts payable and recorded the other side somewhere to an expense account for example so i'm going to close this back out and we're back into our pay bills section i'm going to clear all the items down below now if we have let's pick one again let's pick one here so we could set a discount or set credits if those are applicable and then we have the payment date down below so this is going to be the that obviously we're going to be making the payment and then the method of the payment we've got the check we've got the credit card and a bank payment now the check form in general can be thought of as the form that's going to be decreasing the checking account if you're actually writing physical checks then you could buy the checks you would still need to buy the checks separately they're pre-printed checks because they're going to have pre-printed numbers on them which is an internal control and then you'd have to say i'm going to print the checks and then you want to put the checks into the printer and basically print out the checks otherwise you can assign the check numbers when you're assigning the check numbers if you're paying in some other way possibly you're paying by basically writing physical checks and assigning the check numbers or or making basically electronic payments then you wouldn't have basically the check numbers because remember this is going to be recording multiple transactions if you if you select multiple of these items basically at one point in time and then of course you could you can pay the selected bills i'm not going to actually pay them in our practice problem here that would be the next step when you do that you're going to you're going to then create multiple then of those bill payment forms i'm going to close this back out and say uh you have bills no i don't want to record them and then if i go back on over and open up the tab here and go into the balance sheet and scroll down to the accounts payable double clicking on the accounts payable and changing the front date 010124 note that you always want to keep in mind then what's going to happen to the other side once you enter the transaction you're going to have those pay bills they are going to be decreasing the accounts payable so if i double click on the accounts payable or double click on the bill that's in accounts payable it looks like a normal check here because again it is kind of a check it's decreasing the checking account that's what a check form basically does but at the bottom it's not assigning it to like an expense account or an asset account instead it's checking off the related bill that's important to note because if you want to know the ultimate account that was uh paid for what meaning what did you pay for utilities did you pay for inventory you got to go back to the actual bill because that's the one that ties to the actual expense account that was paid for when this pay bill check was used it's check but it was the other side of it's going to go to a decrease in the liability of accounts payable closing this back out so that's a nice little tool that they have here that that they're indicating that it's a check but it's a specific kind of check doing a specific thing decreasing the accounts payable obviously in the accounts payable the bills increase the pay bill decreases now if i close this back out and i compare that to a checking account in the check a check in the checking account double clicking the checking account changing the date from 010124 so this is an actual check form and this is a uh pay bill check form so the other side of the check form whether it be a check form or a pay bill check form will be a decrease of the checking account but if i go to a normal check form that's not a pay bill check form you can see at the bottom we're not checking off the bill that was paid for but instead we got the expenses and items for the account to assign to like an expense account or items like if we were to be purchasing inventory closing this back out closing this back out once we enter that detail we can also see that if i go to the to the vendor balance detail it's going to break out that information by vendor as well so we could see now the the pay bill form for a particular vendor and this is a little bit easier to see in here what really happens in an accounts payable type of account it goes up with a bill and then it goes it goes back down when you pay off the bill right accounts payable goes up for this particular vendor with a bill and then goes back down that's what we would expect to happen you should be able to tick and tie everything out and see what's increasing and decreasing the ones that don't have a decreased tie to it are the ones that are creating the indian balance those are bills that have been entered which have not been matched out have not been yet paid for and of course the other way that we track that information would be for example if a vendor was to call us and say i haven't received payment or my my the amount that you say is owed to us is different or something like that oftentimes we would go to the vendor center possibly go into the vendor drop down atop and vendor center and then you might go to the vendors tab search for that particular vendor and then look at the detail on the right hand side and check out and say look i got the pay bill right here and then you could basically take it from there that's a common kind of way that you might be interacting with the vendors or you can you could search by the transactions on the right and once again look at those bills sorting the bills possibly by all bills or open bills the ones that have not yet been paid and the the overdue bills you can also look at the the bill payments basically the you know the payment forms and you've got all the payment forms here if you double click on them you've got those those basically check forms so this would be a way to kind of search in on the decreases to the checking account but specifically those tied to decreases and the other side going to the accounts payable so if i go back to the home page you've got the enter bill increasing the accounts payable other side going to an expense or asset account and then when we pay the bill you've got basically a check form decreasing the checking account but it's a specific check form the other side going to the accounts payable you want to understand the impact on the financial statements the two accounts that are affected at least whenever you enter every every transactions you want to be able to visualize them and then go to the financial statements balance sheet income statement and the related reports such as the accounts payable related reports and try to visualize what's going to happen to the end result then drill back down from the end result the financial statements just to get an idea of what is happening firmly to get a firm grasp of it