Pay Bills & Handling Credits in QuickBooks

Posted by on Feb 11, 2011 in Vendors Module | 0 comments

This is an unusally longer than normal segment, since it is dealing with paying bills, applying credits, printing cheques and entering manual cheques, so grab a coffee!

In the last segment there were three bills entered so in moving forward I will escalate the time frame in order to show you how to pay these. From your Home page click on the Pay Bills icon. If you happen to be in the Vendor Centre then New Transactions, Pay Bills.

This will open the the Pay Bills screen. In here you can pay unpaid bills by cheque, credit card or direct payment. Direct payment is sometimes used for paying Employees. You can also enter historical manual cheques that you have hand written to pay bills. Unless you are only writing a couple of cheques a month, I would suggest that you use printed computer generated cheques using a laser printer.

Cheques can be ordered from a variety of companies (Davis + Henderson) that produce Voucher style laser cheques. Do not use an ink-jet printer as they tend to smear, duplicate printing in areas they should not and are too costly.

The other items you will notice are several fields have been filled in with default information. These would be Show all bills, Sort by, Date, Method, To be printed and Account, the latter referring to bank account.

Besides these, you will see nine columns with headers for descriptions. These will become self-explanatory as we work through the exercise. Underneath these columns are the Totals for four of them: Amt. Due, Disc. Used, Credits Used and Amt. to Pay. Underneath the Totals line is a Select All Bills tab.

Underneath the Select All Bills tab are two sections, Credit Information for Highlighted Bill and Payment.

For this exercise we will change the Date in the Payment section to February 14, 2011. We will start off with the Credit first and then pay the bills later.

The Vendor ABC Rentals has an amount of 100.00 showing as an opening balance, which was used during the setup of this Vendor. If you look at the Credit Information section you will notice that The Number of Credits shows 0 and Total Credits Available field shows 0.00. This will change once we click the box beside the ABC Rentals Vendor, so go ahead and click the box.

The information has changed to 1 for the Number of Credits and 100.00 for Total Credits Available. Click on the Set Credits tab which will open up the Discount and Credit screen. In the Credit tab, the check box will be marked, the Date is Jan.14/11. Ref. No. is CM 6789, Credit Amt. is 100.00, Amt. to Use is 100.00 and Credit Balance is 0.00.

Click on the Done tab which returns you to the Pay Bills screen. In the Credits Used column for ABC Rentals will be 100.00 and in the Amt. to Pay column, 0.00.

Trainer’s Tip. If you do not clear out the bills this way using the Credit when it is available, these Credit amounts will continue to accumulate when Credit Memo’s are processed and can get quite cumbersome and confusing.

At the right hand bottom of the screen is the Pay Selected Bills tab which you will click on and that will open the Payment Summary screen.

This screen tells you that Payment has been successfully recorded for the following bill: and lists the information in respect to ABC Rental. Since we are going to pay more bills click on the Pay More Bills tab.

Now back in the Pay Bills screen you will see that ABC Vendor is no longer available and Rogers Communications and XYZ Training are left to pay.

I’m now going to show you how to pay the next two bills using a computer generated cheque and one that you had hand written (manual). First the computer cheque.

Change the Date again to Feb.14, /11, click on Rogers Communications, which fills in the Amt. to Pay column with 81.29. Make sure that in the Payment section that Method shows Cheque, the To be printed button is tagged and RBC is the Account bank.

If for some reason you wanted to short pay this bill, you would go back up to the Amt. to Pay field, highlight the amount and change it. This would then change the Totals also and a balance would remain outstanding. This is done sometimes when the amounts are large and the bank account does not have enough funds in it to cover the whole amount.

Once again click on the Pay Selected Bills tab and this time from the Payment Summary screen choose Print Cheques.  Note that if you were going to print a batch of cheques you would have chosen Pay More Bills. For this exercise we are going to print this cheque.

The Select Cheques to Print screen opens and we see Rogers Communications and Hart Printing both marked for printing. Click the check mark on the Hart Printing line which will unmark it for printing and Rogers Communications should be the only one left to print.

The Bank Account should be RBC and we will change the First Cheque Number field to the exact number of the first laser cheque that we are using to print. In this exercise we will use 1000.  Clicking on OK takes us to the Print Cheque screen.

The message at the top indicates that You have 1 cheque to print for $81.29. Now under Print Name choose the Printer that you will use to print the cheque, accept the Printer type default, click on the button beside Voucher and  make sure you place the laser cheque in correctly.

You may have to experiment on a blank piece of paper to see if the laser cheques go face down, face up, cheque top facing front or rear. Then click on the Print tab. As the cheque is printed the Print Cheques – Confirmation screen will appear and the information on the screen will guide you through depending on whether your cheque printed correctly or not. Just follow the directions if you need to reprint the cheque.

We will assume that the cheque printed correctly and click on the OK tab.

You’re just about finished, one more to go. This will be the entering of the manual cheque that you hand wrote when you were in a hurry. Since you are already familiar with the Pay Bills screen here are the steps.

Pay Bills, click on XYZ Training.  Since the cheque was written on a different Date taken from your cheque stub, we will change it to February 13, 2011. Make sure Vendor XYZ Training is marked for payment. In the Payment section you will need to change the Method to Assign cheque no., then click on Pay Selected Bills.

The Assign Cheque Numbers screen opens with the Let me assign the cheque numbers below default button marked, and in the Cheque number field key in the manual cheque number that you used when you hand wrote the cheque. We will use 212 and click on OK and in the Payment Summary screen choose Done.

To see how these transactions were recorded by QuickBooks, go to the Vendor Centre and look at each Vendor and the Bill Pmt -Cheque transactions.

Amazing isn’t it! You just learned how to Pay Bills, Process a Credit, Print Cheques, Enter Manual cheques all in one segment.

Next up, Managing the Sales Tax Codes.

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