 QuickBooks Online Accounts Payable Agent Reports Get ready to start moving on up with QuickBooks Online. We're going to be using the free QuickBooks Online Test Drives Searching in our search engine for QuickBooks Online Test Drives Selecting the option that has Intuit.com and the URL into it being the owner of QuickBooks 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. Picking the United States version of the software and verifying that we're not a robot. Zooming in by holding down control up on the scroll wheel currently at the 125% on the zoom in Selecting the cog dropdown noting that we're in the accountant view as opposed to the business view We'll try to toggle back and forth between the two views so you can see where stuff is located in each of them. We're going to go to the tab up top to duplicate it as we do every time. Duplicate in the tab to put our financial statement reports and right click in the duplicated tab to duplicate it again as that's thinking tab to the middle and reports on the left. Opening up the balance sheet as that's thinking tab to the right reports on the left. Opening up the P and L profit and loss income statement close on the hamburger otherwise known as the hamburger and changing the range 010122 tab 12322 tab run it tab to the middle close up the boogie scrolling up changing that range in from 010122 tab 12322 tab and run it. That's the setup process that we do every time. This time we're going to look at some supporting reports to the major financial statement account on the balance sheet of the accounts payable. We have similar issues with the accounts payable as we do with the accounts receivable. Noting however we only have those issues if on the vendor side of things the payment side of things the money going outside of things for goods and services that we're purchasing we buy them on account using a bill form. So let's just recap that if I hit the plus button up top remember that when you're on the vendor side the vendor cycle the expenses cycle at the end of the day we expect or the end of the cycle at least we expect then money to be coming out of our checking account typically. So we could do that the easiest method which would be basically we just pay the bills as they become do with an expense form or a check form. And so we get the bill we enter an expense form or a check form possibly with the use of the bank feeds and we've recorded at that time or we might have an accrual system in which case we're going to enter the bill into the system as a bill in the system. Now notice this gets a little get confusing. I just want to point that out again. The bill specifically for QuickBooks means that we're entering something for goods and services that we are purchasing. Not only that the bill means that it like if I receive a bill from a vendor I might not enter it as a bill in the system. I might just pay off the bill with an expense form and a check form. The bill in QuickBooks is a form that means we're increasing the accounts payable. So only if we're increasing the accounts payable and we expect to pay it later will we have a bill form only when we're using the bill forms. Will we have accounts payable only if we're tracking accounts payable will we need these other reports that are going to give us more detail about the accounts payable. Now also just realize that small businesses often times might be in a situation where they're on more of a cash based system for their payments where they're on more of an accrual based system for their revenue because on the revenue side they're in the type of industry where they have to invoice. But on the expense side of things they can they could just pay the expenses possibly as they come do with an expense form possibly using the bank feeds or possibly using a credit card again using the bank feeds with the credit cards. But as the company gets bigger more and more you're going to want to use the bill form typically because that helps you to pay the bills as late as possible because cash management becomes bigger and bigger of a thing because like if you paid your your bill your utility bill today versus 15 days from now it's not going to have a big impact on your cash management but if you had a whole bunch of transactions that you could pay 15 days later than you're paying them then it starts to become necessary or impactful or have a material impact. If you have very large dollar amount transactions then the later you can pay them then the better your cash flow strategy typically is. Okay so given that if we go back on over here we can say that the accounts payable here represents who we owe the money to if I drill down on that it gives us like our GL account our transaction report which is like a general ledger notice that goes up with a bill it goes down when we pay the bill that's what we expect to be happening. However this is broken out by date and I want to see it broken out by who we owe the money to in other words by vendor. So I'm going to go back on over that's where the reports come into play here so let's go to the tab to the right right click on that tab and duplicate it so we can open up more reports more reports and then we're going to go to the reports on the left hand side close up the hand boogie scrolling down to the area where it says who you owe what you owe so you would expect if it says what you owe you typically owe to the vendors meaning these are typically supporting accounts payable so they got the 1099 reports up top we'll talk more about them possibly in a future presentation because there's kind of specific reports due to added complications from taxes taxes always kind of complicate things so we'll kind of skip that for now we got the accounts payable aging and the accounts payable aging summary the detail in the summary these are the main reports that oftentimes we're going to be using that give us more information than we find generally in the vendor center and then you got the bill payment list remember that the bills represent an increase to the accounts payable so this is you know the payment of the bills is going to give you more support about basically the tracking of the accounts receivable on the balance sheet bills and applied payments once again the bills increase the accounts payable so this is generally giving you more information about the activity in accounts payable in essence unpaid bills these are the bills that we entered into the system increasing accounts payable that's what bills do that haven't been paid so this will be a supporting report to accounts payable vendor balance detail this is specifically what I would call the sub ledger these two the detail and the summary of the accounts payable breaking out the accounts payable not by date of transaction but by vendor so so these two would be the primary kind of sub ledger reports if I go into the vendor balance summary for example and there we have it now we've got the accounts payable totaling to 1602 and it's broken out by who we owe the money to if I go back to the first tab we can see I'm sorry to the balance sheet that ties out to the 1602 67 here that makes sense however we often don't use this report as much in practice because instead of going there we're going to go into the vendor center we're going to go to the left hand side we're going to go into the expenses tab in the accounting view and then we could sort by the expenses up top and filter for example by the type which is a bill and possibly sort by the open bills that have not yet been paid and that's one way we can sort this information it actually gives us a nice total down here and QuickBooks which is really cool because that means we can actually tie this out without an actual form to what's on the balance sheet right there right there so in practice that's what you would probably be doing when you're sorting your bills but you always want to think about when you're doing that that you're tying out to an amount basically on the balance sheet for accounts payable going back to the tab to the left you can also sort it over here I'm going to I'm going to open up the tab and go back to the expenses and you could go into the bills and do a similar sorting method in here for the unpaid bills for example or you could go into the vendors and you could say I want to see the open bills by vendor and now if they had multiple bills that were open they would be you don't get this nice sub total down below but it's the same information so if I go back over here on the balance sheet this balance has a nice sub ledger which we could make a report for which looks like this this would be the most natural sub ledger report which you could use in reporting purposes but oftentimes in practice we're going to be using that that vendor center area to get that same information back to the reports scrolling down to to who you own to the other one is of course the vendor balance detail reports let's look at that one so same thing but now you've got the vendors and then you've got the open bills within each of them giving you the detail about the open items you might be able to sort this report to give you more information than just the bills so that you have the bills that were paid and the pay bills and what not to give you that more detail but the total should come out to the same and this gives you the detail that's more similar in practice if you were going to go to the vendor center and go to your actual vendors here you get a similar kind of look from a practical perspective of the vendors that you owe money to and the number of bills that are open within here so going back on over to the tab to the right let's see what else we have under the reports and close up the hamburger we're looking at who you owe money to what you owe they call it so we also have those two we've we've got the unpaid bills this would be more similar to if I go to the tab to the left looking at the closing up the ham or open the hamburger expenses looking at the expenses here and sorting by bills or the bills here that would be similar you would expect to a report like this which would be the unpaid bills which once again is supporting the accounts payable these are bills and applied payments so now you've got kind of both sides of the transactions we've got the bills and the payments applied to them and then you've got the bill payment list and then let's go into the ones that add a little bit more detail that's why these reports are the most common oftentimes because they have that added layer of the aging detail so let's go into the accounts payable aging let's look at the summary first this is probably the most common layout that we would expect similar to the accounts receivable aging it's breaking out the accounts payable by how current it is so now we've got our vendors this is the current amounts these the one to 30 days past due 31 to 60 61 to 90 so obviously if we look at this and we start to say okay we've got some amounts that are way past due then those are the ones that that we would you would think need to jump on and be paying from a cash flow perspective our goal often would be to hold on to the cash as long as possible paying as late as possible as long as we're not giving up penalties for doing that or interest charges or fees like that and as long as we're not annoying our vendors we want to have good relationships with our vendors so often times if you get too aggressive on your cash management strategy then you can annoy the people you're trying to do business with and that's not really good either but that gives you that added level of detail it's probably not as important of report this AP aging as the accounts receivable aging because the accounts receivable aging has that added layer where we don't know which customers actually going to pay us right we got a we're trying to get the customer to fulfill their side of the bargain with the accounts receivable and we would have to value how much of the receivables we think maybe wouldn't be collectible in that case in this case this is our side of the table we're the one that needs to fulfill our side of the transaction the vendor has done what they're supposed to do we need to fill fulfill our side so it's not like we have this estimate of how much of these payables are not going to be payable or anything like that we're the ones paying them right so we're trying to determine which ones need to be paid and when so that's why the accounts payable aging summary might not be as common of report even though the format looks quite the same as the accounts receivable aging report or one reason if I go back up top you can change the number of periods and so on in a similar way as the receivable aging and let's look at the detail one if I go to the hamburger reports and just look at the last one for the detail to round out our discussion of these items what you owe here's the AP aging detail and so now you've got the same kind of stuff except the agents are broken out this way and then within each of the categories you've got the bills that are making up that aging category so it comes out to the total again just breaking it out in a different fashion so there it is let's go back to the first tab let's hit the cog drop down and switch to the business view just to see where stuff is located that we've been looking at under the business view so we know that the reports are in the business overview there's the reports and then we know that we've been looking at like the vendor center I would call it the vendor center which is under the get paid and pay center we're under the pay part of the get paid and pay center so we could go under the vendors here there's our list of vendors we have our open invoices we could go to the bills and then unpaid bills and then that other transaction detail is under the bookkeeping section so that's under bookkeeping transactions closing the burger and then we're on the expenses tab and that's where you can sort your items by say the open bills up here so those were the locations are under the business view as opposed to the accountant view