METHOD #1

1. Login to QuickBooks Online.
2. Go to New>Vendors>Bill
3. Enter your vendor bill and hit save and close.
4. Find the previous check payment made out to that vendor.
   1. This is the check payment that you want to apply to the bill.
5. Within the check payment, change the category (account) that you previously assigned this check payment, to “Accounts Payable”. Save and Close.
6. Go to the Pay Bills screen: New>Vendors>Pay Bills.
7. Be sure the payment account and the payment date are the same as in the original check payment.
8. Click on that bill (the one you just entered).
9. Be sure the “Credit Applied” column shows the same amount as that check payment.
10. Note: The Payment column should be zero.
11. Click Save and Close.
12. To be sure you did things right, go back to that bill to be sure it is now in a fully paid status.

METHOD #2

1. Login to QuickBooks Online.
2. Go to New>Vendors>Bill
3. Enter your vendor bill and hit save and close.
4. Find the previous check payment made out to that vendor.
   1. This is the check payment that you want to apply to the bill.
5. Within the check payment, go to “Add to Check” on the right side drawer (that popped open) and “Add” the bill.
6. Now change the Amount field to the amount of your check payment.
7. Be sure “Amount to Credit” at the bottom now states zero.
8. Click Save and Close.