This article will provide you complete information about the usual workflows in QuickBooks Desktop. But before knowing about how it works, you should first know about the Accounts Payable. You can contact us at QuickBooks Customer Service Phone Number +1888-396-0208 and get complete information about various different processes in QuickBooks Desktop.

What Is Accounts Payable?

Accounts Payable is the records of outstanding bills of a business. It is basically the money owe by you from your vendors for goods or services you purchased on credit. Accounts Payroll is called A/P in short. (The word “accounts” is plural, but QuickBooks uses a single account on the Chart of Accounts for tracking all the outstanding bills.)

What Is QuickBooks Accounts Payable Account?

The account added by QuickBooks in the Chart of Accounts automatically when you enter a bill for the first time. This account is used by QuickBooks to track the money you owe. QuickBooks records the transaction in your Accounts Payable account whenever you enter or pay a bill for a vendor.

Your Chart of Accounts lists it as Account Payable for the type of account. If you require more than one account of this type, you can also add additional Accounts Payable in the Chart of Accounts. If you have multiple Accounts Payable account, QuickBooks will allow you to choose the account that you want to use while entering or paying a bill.

Accounts Payable Workflows

In QuickBooks Desktop, there are two usual A/P workflows. You need to select the one workflow that suits the best for your business to record you’re A/P transactions. You need to follow the steps carefully for each transaction from your chosen workflow.

Workflow 1: Purchase Order – Receive Inventory – Enter Bills against Inventory – Bill Payment

This workflow can be used to track the goods and services you ordered from your vendor. It also includes creating a purchase order, receiving inventory, entering bills against inventory, and paying bills.

Note: Purchase order can only be used in QuickBooks Desktop Pro, Premier and Enterprise.

This workflow contains the following steps:

  • Step 1: Create a purchase order
    • Turn on the purchase order if you haven’t turned it on already.
    • From the main menu, go to Vendors and then select Create Purchase Orders.
    • From the Vendor drop-down, click on the vendor for which you want to create a purchase order. You can also choose Add New to add a new vendor.
    • Provide the required information in the respective fields and add the items you want to order.
    • Click on Save & Close.
  • Step 2: Receive inventory
    • Receive inventory with a bill
      • Click on the Receive Inventory drop-down from the Home page and select Receive Inventory with Bill.
      • Now from the Enter Bill window, choose the vendor’s name.
      • Click on Yes to receive a purchase order for the bill.
      • Select the appropriate PO and then click on OK.
      • Verify the information on the Bill. Make sure that any of the fields filled in on the PO are carried over to the Bill except the Memo field.
      • Click on Save and Close.
      • Now, go to the Pay Bills once you are ready to pay the bill.
    • Receive inventory without a bill
      • Click on the Receive Inventory drop-down from the Home page and select Receive Inventory with Bill.
      • Now from the Enter Bill window, choose the vendor’s name.
      • Click on Yes to receive a purchase order for the bill.
      • Select appropriate PO and then click on OK.
      • Verify the information on the Bill. Make sure that any of the fields filled in on the PO are carried over to the Bill except the Memo field.
      • Click on Save and Close.
      • Now, go to the Pay Bills once you are ready to pay the bill.
    • Step 3: Enter bills against inventory
      • Choose Enter Bills against Inventory from Home
      • On the Select Item Receipt window:
        • Choose the appropriate vendor’s name from the Vendor drop-down.
        • Put a checkmark on Use Item receipt date for the bill date checkbox to keep the original inventory availability date.
        • Choose the Item Receipt that corresponds to your bill. Note: You need to convert all bills separately if there are multiple Item Receipts.
        • Click on OK and QuickBooks will start converting Item Receipt into a bill.
      • Now, go to the Pay Bills once you are ready to pay the bill.
    • Step 4: Pay bills.

Workflow 2: Enter Bills – Pay Bills

This workflow can be used when your business doesn’t track the goods you ordered. It includes entering and paying your bills.

This workflow contains the following steps:

  • Step 1: Enter Bills
    • Choose Enter Bills against Inventory from the Home
    • On the Select Item Receipt window:
      • Choose the appropriate vendor’s name from the Vendor drop-down.
      • Put a checkmark on Use Item receipt date for the bill date checkbox to keep original inventory availability date.
      • Choose the Item Receipt that corresponds to your bill. Note: You need to convert all bills separately if there are multiple Item Receipts.
      • Click on OK and QuickBooks will start converting Item Receipt into a bill.
    • Now, go to the Pay Bills once you are ready to pay the bill.
  • Step 2: Pay bills

Technical Support For QuickBooks Desktop

The provided solutions should be helpful for you in understanding the Account Payable workflows in QuickBooks Desktop. If you have some doubts regarding the workflows of A/P or A/R then you can contact us at our toll-free QuickBooks Support Phone Number +1888-396-0208 to get complete assistance for your QuickBooks Desktop.

Accounts Payable Workflows In QuickBooks Desktop

Leave a Reply

Your email address will not be published. Required fields are marked *

Call Us: +1888-396-0208