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Pay Vendor Bills in QuickBooks

Pay Vendor Bills in QuickBooks

Bill payment is not a task that many people enjoy doing, but it plays a crucial role in the economy. Those starting new businesses are always eager to go out and make sales. Despite the fact that this is the most rewarding aspect of any business and also one of its most crucial components, owners frequently overlook other equally significant areas of their enterprises.

Although crucial to a small business, the vendors and bills section frequently gets overlooked in favor of other aspects of the operational process. Unfortunately, this can result in significant problems if not handled promptly and correctly. This aspect of running a small business is often the least exciting for the business owners. Vendors become angry, credit scores suffer, and business relationships suffer as the bills mount.

Today’s business world demands that accounts payable have a clearly defined process and procedure for when it comes time to pay bills. Setting these up won’t take long, and once they’re done, this unfavourable aspect of operating a business will happen easily and frequently.

Invest in accounting software that includes an accounts payable feature. We consider QuickBooks to be the best software solution that is reasonably priced. Contrary to popular belief, less than half of all small businesses employ financial software. Upgrading to QuickBooks gives business owners who still maintain a paper ledger or use applications like Excel to track their accounts payable a significant advantage.

When used properly, QuickBooks will streamline your accounts payable process and assist you with Reminders regarding bill payment deadlines, keeping you informed about what is owed when and preventing missed payments. Never before has it been so simple to manage your cash flow and bill payments.

Use QuickBooks’ Auto-Pay function. You can set up the Auto Pay feature with businesses and suppliers for whom you have recurring payments so that it automatically debits your account and pays your bills on a specified date each week, month, or year. Which account is used to pay for this invoice is up to you (checking, business credit card, or other specified account). Consider the time you will save by not having to go through your monthly bills, write checks for each, and mail them. Direct post-dating of entries into the check register is possible. 

How to pay Vendor Bills

Vendor payments, also referred to as accounts payable or invoice to pay, refer to the procedure of compensating suppliers for the goods and/or services they provide to your business.

Maintaining a good relationship with your suppliers while making sure you don’t have obligations for an extended period of time is possible by managing your vendor payments in a systematic and timely manner. This keeps your business running as efficiently as possible.

If your business engages in any of the following transactions or services, etc., vendor payment portal administration becomes crucial.

  • A variety of currencies are used to pay vendors.
  • To coordinate, many merchants must be involved.
  • To keep track of things if your business alters the length of credit periods
  • If payments are made from multiple branches and divisions, monitoring cash flow is required.
  • To comply with the MSME Act and GST regulations, timely payments are required if the sale and purchase of goods from the same seller required the balancing of obligations.

A vendor invoice can be paid easily and quickly! You will learn how to use any discounts or vendor credits you may have with each vendor in this article.

Process of Paying Vendor Bills:

Through the Pay Bills Page

  • Step 1: Log into NetSuite and select Pay Bills under Transactions Payables.
  • Step 2: Search for the vendor.
  • Using CTRL + F or the filter fields at the top of the page, you can conduct a search. Let’s conduct a Google search as an example.
  • Step 3: If there was a discount applied to the vendor bill, enter it in the Taken field.
  • Step 4: Type the Amount to Pay into the Payment Field
  • Step 5: To pay the bill, click the Save button.
    • There will be various/separate bill payments created if you chose multiple vendor bills on the Pay Bills page.
    • You should be aware that while you can apply multiple vendor bills to a single bill payment, you cannot apply partial payments to vendor bills.
    • An open vendor bill will become fully applied once a bill payment has been fully applied to it.

Via the Vendor Bill Page

  • Step 1: Navigate to Bills Enter Bills List under Transactions Payables.
    To inactivate a vendor’s record, go to Step 2 and click Edit next to their name.
  • As an example, let’s use Google once more.
  • Step 3: To click the View button next to the bill that needs to be paid.
    The bill transaction page will then open.
  • Step 4: Select “Make Payment” from the menu. On the Bill Payment page, data from the bill will automatically populate some fields, but you can still change things like the Posting Period.
  • Step 5: Tick the appropriate settings for each field on the Bill Payments page.
    • Depending on the default settings or “To Bill Pay” if the “Enable Online Bill Pay” checkbox in the Vendor Record is enabled, a number will be generated automatically in the “Check #” field.
    • Check the To Be Printed box to print a check and make a check payment.
    • Check this box to include a voucher with the check that will be printed.
    • If the bill payment will be handled by ACH, check this box to remove the check number.
    • Account field: This is the bank account from which the amount that will be debited or withheld will be processed.
    • Subsidiary 
  • Step 6: When the TO ACH checkbox is selected, enable ACH processing. You can: using the A/P Account dropdown field.
  • If there are multiple Accounts Payables, choose the correct Accounts Payable for the Bill Payment transaction.
  • Step 7: Verify the information in the application The Apply checkbox will be checked by default because this bill payment was made directly from the vendor bill, and the payment field will automatically contain the total due.
    Payment will automatically calculate if a discount is taken, if any.
  • Step 8: After the specifics are complete, click Save.

Using Pay Single Vendor for payment

  • Step 1: Select Pay Single Vendor under Transactions > Payables.
  • Step 2: From the dropdown menu on the Bill Payments page, select the vendor or Payee.
    If you have multiple vendor bills to pay for just one vendor, use this payment option.
  • Step 3: In the vendor record, select the Make Payment button.

Sub-list for paying with vendor bills:

  • Step 1: Go to the Information tab, then Transactions, in the vendor record.
  • Step 2: To filter the list of transactions made by this vendor, filter the Type field in the Transactions Subtab to “Bill.” The Vendor Bill sub-list of a vendor record also allows you to access a Vendor Bill.

How to pay Vendor Bills Partially

Occasionally, you might give a vendor a payment that is less than the total of an invoice. The various solutions to this problem are discussed in this article. Your business configuration and requirements will determine the options that are available to you. If you pay an invoice before the due date, the vendor may give you a cash discount.

You might decide to make another partial payment after your initial one to pay the invoice in full. You must turn on the Calculate cash discounts for partial payments option on the Account payable parameters page to receive a cash discount for a partial payment.

When you post the transactions, the Cash discount amount to take field is automatically recalculated if you enter a partial payment while leaving the full invoice amount in the Amount to settle field.

Steps to pay Vendor Bills Partially:

  • To access lists, go to Transactions > Purchases/Vendors > Enter Bills.
  • Next to an Open Bill, click View.
  • Hit “Make Payment.”
  • Under Payment column, enter the partial payment amount.
  • Press Save.

How to review Vendor Bill while processing payment

When goods or services are acquired in accordance with a purchase order placed with a vendor, a vendor invoice from a purchase order is generated. In addition to a header, the vendor invoice has one or more lines for the goods or services. Purchase orders, product receipts, and vendor invoices all come together to form a full cycle.

Although some vendor invoices link to a purchase order, some vendor invoices may also have lines that don’t match the lines on the order. Vendor invoices that are not connected to a purchase order can also be made. These vendor invoices may be for recurring services, like a utility bill. When you add an ongoing service, you do not need to make reference to a purchase order.

There are various methods for entering a vendor invoice:

  • You can quickly enter invoices that don’t reference a purchase order in the vendor invoice register so that the cost can be accrued. To stop the accrual, you can pick out those invoices and post them to the vendor balance using the vendor invoice approval journal.
  • The vendor invoice journal enables quick entry of invoices without a purchase order reference.
  • The vendor invoice register, in conjunction with the vendor invoice pool, enables quick entry of invoices for expense accrual. The associated purchase orders can be opened later to post the invoice against the expense account.
  • You can make vendor invoices from accepted purchase orders on the Open Vendor and Pending Vendor Invoices pages.

Sending a vendor invoice for review:

Workflows may be used by your company to control the vendor invoice review procedure. It may be necessary to review the invoice line, the invoice header, or both. Depending on where the focus is when you choose the control, the workflow controls apply to either the header or the line. The vendor invoice is sent through the review process using the Submit button rather than the Post button.

How to change the default payment account while using the Pay Bills Module

Make a default payment method if you or your clients prefer it to save time when paying invoices. QuickBooks uses the pre-configured default payment method when you quickly mark invoices as paid.

Step 1: Add your default payment method

Include the method of payment you want customers to use when doing business with you. This is how:

  • Select Configuration under Settings.
  • Choosing the Payment Methods tab.
  • Click on New Payment Method.
  • Give the payment method a name that fits.
    Note: Tick the Default Payment Method checkbox if you want to make this the default.
  • Pick Create.

Step 2: Set up a default payment strategy

A payment method can be assigned to a particular consumer or business customer or to all of them. This is how.

The payment method you designate for a consumer or business customer is used by QuickBooks Commerce when you mark an invoice as paid.

  • Navigate to Relationships.
  • Choose the consumer or business client for whom you want to specify a default payment option.
  • Pick Edit.
  • Choose the desired payment method from the dropdown list after choosing the default payment method.
  • Select Save changes.

Step 3: Invoices should be paid using the default method.

Go to the unpaid invoice and click “Mark all as paid” to pay the invoice using the default payment method you selected.

  • Select Sales Orders.
  • Choose Bills.
  • Determine which bill you want to mark as paid.
  • Pick Mark all as Paid. It pays each invoice separately if there are multiple invoices associated with the sales orders.

General FAQs

How do I choose a default bank account for my pay checks?

To choose a default account for pay checks, adhere to these steps:

  • Return to Edit, then select Preferences.
  • Choose Checking once more in the left pane.
  • Click the tab labelled “Company Preferences.”
  • In the Open the Create Pay checks form with account drop-down on the Select Default Account to User section, select the appropriate account. When finished, press OK.


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