How to Post a Payment to a Vendor Bill in QuickBooks Online

There are different ways to begin the process of posting your payment on a vendor bill in QuickBooks Online. This article discusses two different ways to accomplish this task.

Note: I am going to assume you have already entered your bill into QuickBooks previously and now you are ready to post your payment to this outstanding bill to close it out (and send the payment to the vendor of course).

Method #1

1. Click on Expenses on the left-side menu, and then click on Vendors.

2. Start typing in the vendor name in the “Find a vendor or company” field, then click on the vendor name once found.

3. Find the bill you want to apply payment to and click on “Make payment” on the right side.

4. Be sure to choose the correct fields such as:

a. Bank/Credit account

b. Reference Number

c. Payment Date

5. Type in the amount of the payment in the “Amount” field.

6. Checkmark the bill or multiple bills in which you want to apply this payment to:

a. Note: QuickBooks will attempt to do all of this for you automatically, so always be sure to double-check the total payment amount in the “Amount” field and the checkmarks next to all of the outstanding bills you are actually paying on.

7. Scroll to the bottom right-hand side and verify the following fields:

a. Amount to Apply: Be sure this amount matches your total payment amount.

b. Amount to Credit: Be sure this is zero, otherwise if there is an amount here, then the “Amount to Apply” field above will not match your total payment amount. This is because you are attempting to apply an over-payment to this vendor’s outstanding bills and thus a credit will be created (to potentially use and apply to future vendor bills later).

8. Click Save and close.

Method #2

1. Click on the Plus icon, then, underneath the Vendors column, click on “Expense” if paying by ACH or credit card, or click on “Check” if paying by check payment.

2. Start typing in the vendor name in the Payee field.

3. You will see a right-side drawer open up that contains all of the open bills from this vendor.

4. Click on “Add” underneath the bill that you choose to pay on and be sure to close that right-side drawer when you are done picking your bills.

5. Now you can proceed like you did in Method #1 above:

a. Be sure to choose the correct fields such as:

i. Bank/Credit account

ii. Reference Number

iii. Payment Date

b. Type in the amount of the payment in the “Amount” field.

c. Checkmark the bill or multiple bills in which you want to apply this payment to:

i. Note: QuickBooks will attempt to do all of this for you automatically, so always be sure to double-check the total payment amount in the “Amount” field and the checkmarks next to all of the outstanding bills you are actually paying on.

d. Scroll to the bottom right-hand side and verify the following fields:

i. Amount to Apply: Be sure this amount matches your total payment amount.

ii. Amount to Credit: Be sure this is zero, otherwise if there is an amount here, then the “Amount to Apply” field above will not match your total payment amount. This is because you are attempting to apply an over-payment to this vendor’s outstanding bills and thus a credit will be created (to potentially use and apply to future vendor bills later).

6. Click Save and close.

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