Home
Contents
Legal
Dedicated
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
Chapter 20
Chapter 21
Chapter 22
Chapter 23
Chapter 24
Chapter 25
Chapter 26
Chapter 27
Chapter 28
Glossary
Error
Messages

Chapter 9

Back to Previous Chapter

Forward to Next Chapter

Back to Contents

 

Advanced Search

 

Money going out

Doing business generally requires obtaining goods and/or services from your suppliers, and paying for them.  The accounts payable XE "accounts payable"  function of QuickBooks begins by recording an invoice from a vendor, advising you of a delivery of value for which payment is required.  An expense or asset transaction is usually recorded.  On your command, the program writes a check in the bank account and records a payment in payables.

NOTICES

1.  To be or not to be recorded in payables XE "payables" ?  Any purchase should go entirely through Accounts Payable, or else stay completely out of Accounts Payable.  Once a bill is in A/P, it should be cleared only with a check written by the Pay Bills function.  If a check is written using the Write Checks function, or directly into the check register, it is not automatically connected to any bill.  (In the DOS versions, a check written with Write Checks, or in the bank account register, cannot be applied to a bill.)

2.  One Payables account is enough for nearly all businesses.  (QuickBooks adds a special sales tax payable account.)  Additional payables accounts should be added if and only if some unusual and well-understood reason definitely requires more payables accounts, and if you are adept at handling complexity.

3.  Accrual method accounting is the normal mode of QuickBooks. Many businesses use cash method accounting, and QuickBooks accommodates them with cash basis reports.  These reports present a concern, if payables are paid through a credit card account.  Cash basis reports look at the payables account, and consider an expense to be paid when it shows as paid in Payables.  The status in the credit card account will be ignored.

Contents |   Up   |   Previous   |   Next

About BlockTax   |   Awards   |   Contacts   |   QB Newsletter   |   Home   |   Legal
Last modified: May 21, 2004