How to Pay Vendors in QuickBooks

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QuickBooks vendor payments can be made using Online Bill Pay in QBO or through Desktop as the digital transformation in fintech progresses. Accounts payable automation apps with integrated third-party add-ons use advanced technology to improve efficiency. With Intuit QuickBooks payroll, QuickBooks provides direct deposit for vendor payments to independent contractors. ACH is a convenient payment method. After knowing how to pay vendors in QuickBooks then it is easier to understand to operate the whole QuickBooks software and when you sometimes receive errors like an unpaid error in QuickBooks then visit this site.

The Benefits of QuickBooks Vendor Payments

QuickBooks uses electronic ACH to pay bills, which reduces the use of paper checks. An accounts payable automation app for QBO adds fraud control, batch global vendor payments in multiple currencies, automatic payments reconciliation, and enhanced reporting features. As the preferred vendor payment method, you can select debit cards, credit cards, or PayPal.

How does QuickBooks Pay Vendors?

QuickBooks handles basic vendor bill payment tasks in QuickBooks Desktop and Online Bill Pay in QBO for an additional SaaS third-party subscription fee.

The following are the steps for using Online Bill Pay in QBO and paying vendors in QuickBooks Desktop:

Configuring ACH bank transfers for vendors
Making vendor credits for use with vendor payments
Paying vendors with checks before bank account verification is complete
Making vendor payments via check or ACH electronic bank transfer.

QuickBooks Online Bill Pay to Vendors

QuickBooks Online Bill Pay does not support recurring payments to vendors, but it does support bill reminders that you can pay. Vendor credits are not synced. A third-party integrated QuickBooks payables automation app with more bill payment features, more vendor payment methods, and automation of approval workflows is available.

CPAs and bookkeepers can use QuickBooks Online Accountant to subscribe to SaaS third-party add-on apps for each client’s QuickBooks account.

How to Set up ACH Bank Transfers for Vendors in QuickBooks Online Bill Pay

Wait two non-holiday business days after entering the vendor’s bank account to verify the vendor’s bank account with a penny micro deposit from QuickBooks. This process of adding a vendor for ACH bank transfers is referred to by QuickBooks support as “a private bank add.”

If you need to pay the vendor right away, schedule a bill payment by check before adding their bank account to avoid the verification delay. If you add the bank account first and verification is incomplete, QuickBooks sends a check payment rather than an ACH payment. ACH payments can be made the following business day after the vendor’s bank account has been verified.

How to Make a Vendor Payment in QuickBooks Online Bill Pay

When you make a vendor payment in QuickBooks Online, a bill is created in the background (you don’t need to enter bills), it is synced back to QuickBooks Online, and the payment is initiated. According to QuickBooks Online:

“Select the Bill to pay online widget from the dashboard.
Choose the Make a payment option.
Enter payment information for the vendor, such as:
Name of the vendor
Amount
Memo
Bill Number
Account for payment
Account (from chart of accounts) (from chart of accounts)
Description
Customer
Class.
Choose a delivery method.
Choose between a bank transfer and a check.
Choose a process date for the check and, if necessary, edit the vendor information.”

How to Record a Payment Received for an Invoice in QuickBooks

Applying customer payments to open invoices in QuickBooks closes them and keeps accurate records. Accepting payments without accounting for them in financial management software may result in errors and confusion when running QuickBooks reports or reconciling bank statements. You can view open invoices in the Receive Payments window, which is organized by customer name. If the customer has multiple open invoices, you can choose which one to apply the payment to.

To open the Receive Payments window, click “Customers,” then “Receive Payments.”

To view a list of outstanding invoices at the bottom of the Receive Payments window, select the customer’s name from the “Received From” drop-down menu.

Fill in the payment amount in the Amount box and the date in the Date box.
Select the payment type from the “PMT. Method” drop-down menu. Enter the card number in the “Card No.” text box and the expiration date in the “Exp. Date” box if your customer using a credit or debit card.
Select the account used to deposit the payment from the “Deposit To” drop-down menu.
Put a checkmark in the box to the left of the invoice if you want to apply for the payment. Payment is applied to the invoice with the earliest due date by default.
To apply for the payment, click “Save & Close.”

Deleting Overdue Payments on QuickBooks

When you review your QuickBooks accounts, you may notice that some of your payments are highlighted in red. Overdue payments are highlighted in red in QuickBooks, so you must verify that you have made the payment. You can manually delete or void the overdue payment once you’ve confirmed this. Although deleting the payment deletes the record, the associated invoice remains unpaid. Voiding changes the amount due to zero and keeps the record. Follow your company’s procedures to determine which option should be used.