Using "Pay Bills" to make partial credit card payments

I run a non-profit, and when I pay our credit card bill, I usually just write a check without entering it as a bill first. I always itemize the check in the "Expenses" section below, because I have to track purchases to accounts, classes, etc. I usually pay the bill in full.

Last month I didn't pay the bill in full, so I entered it as a bill - itemized the same way I usually itemize checks - first and then made a partial payment.

I didn't have time to deal with it at the time, but am I correct in my understanding that even when the bill is itemized, you're not able to choose which of the items you want to pay when you pay just part of the bill?

On the other hand, if you pay the entire itemized bill, is the itemization preserved? The check doesn't show the breakdown, but is it safe to assume that it is itemized according to how you set up the bill?

Thanks.

Tracey

Reply to
Tracey
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Yes, you are correct. The vendor invoice (bill) is a single entity. Any unpaid balance shows in the individual vendor account as money owed, and affects the vendor balance.

Whether or not you pay the bill in full, the itemization is preserved, and the expenses are still posted to the accounts you assigned.

Yes, the expenses in the bill are itemized according to how you entered the bill.

The bill-payment check will not show the breakdown in accounts, but will show what vendor invoices (bills) the payment has been applied to.

Reply to
L

When you enter a bill, it is just a fancy screen for a journal entry from all the expense accounts into the accounts payable account, the fancy part is keeping track of who the vendor is. When you pay a bill it is just a fancy screen for a journal entry from accounts payable into the bank account, and generating the check to accomplish it. All the itemization of the bill is done when you enter it.

You mentioned this was a credit card account. Do you have it set up as a credit card account? If so paying the bill in less than full causes a different problem. Next month when you get your credit card statement you will have a credit on your books for the full amount but you only paid part of it. You won't be able to reconcile. It sounds like you aren't using a credit card account to track your credit card so this shouldn't hit you. Anyway if it does, you have to adjust the bill (just a G/L transfer from the credit card account to A/P) so it matches how much you cut the check for. Then you will have a matching entry in your books and on their statement. Of course you have interest to enter, but the reconcile screen for the credit card will handle that for you.

Reply to
Golden California Girls

This is correct.

Yes the itemization is preserved.

Consider changing the way you do your bookeeping. Create a credit card account for this credit card. Enter each purchase individually. Every month when you get your statement, do a reconciliation. This is important, because most credit card statements close mid month. You want expenses recorded in the month they actually occurred.

For example your January statement will have charges from December and January. If your only QB entry is the check you write in January, then December expenses are being booked as January expenses, which means you don't have totally accurate books, because some transactions are being booked a month late (actually in a different year in that example). For small stuff this isn't a big deal, but, if you're not paying the bill in full then you probably have large expenses involved, and large items should be accurately recorded.

Getting back to reconciling, when you're done, QB will ask if you want to write a check now or enter a bill to be paid later. Choose "write a check now" and enter the future date that you intend to actually write the check. You'll fill in the check number later. This way, if you decide NOT to pay in full, just adjust the amount of the check to the amount you are acutally paying. Your reconciliations will be accurate in the future, and so will your books.

I recommend you remove last months bill, and set up a QB credit card account and input every line item from that bill forward as a credit card transaction. Use the dates shown in your credit card statement. Reconcile with last months bill, and choose the option "write a check now". For this check entry, enter the amount paid and date paid. When you get your next credit card bill, do the same thing.

S
Reply to
mrsgator88

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