Bill Entry.
Recording the payment to offset a bill

1. Choose Expenses at the left > Vendors on the top or click on + sign.
2 .Click the vendor that has the open bill and find the bill you’d like to pay.
3 .Click the Action drop-down and click Make Payment.
4. In the Payment Account: field select the bank account the payment was made from.
5. On the right click to uncheck the box for Print Later.
6. In the Check # field: enter in the confirmation number for the bill payment, EFT, ATM, debit card or something that helps identify form of payment.
8. Fill in the Date: and Amount: fields with the appropriate information.
On the left under the Outstanding Transactions section, click to check the box next to the bill you are offsetting the payment to.
9. On the bottom right click Save and Close. (Ctrl+Alt+D)

Recording the payment to offset bills for multiple vendors

1. Choose the Plus icon (+) at the top > Show more.
2. Choose Journal Entry listed under Other.
3. For the first line under Account, choose the Bank account you made the payment/transfer from.
4. Under the Credit column enter the total amount of the payment made.
5. On the next line, under Account, choose Accounts Payable as the account type.
6. Under the Debit column, enter the portion of the payment that went to one of your Vendors (which you will select in the next step)
7. Under the Name column, select the Vendor whom you paid with the amount under the Debit column from the previous step. (This amount would have been paid through your bank, but it is important to list the individual bill payment amounts separately in order to show you have paid your Bills in QuickBooks Online).
8. Repeat steps 5-7 until you have all of your individual Vendor bill payments entered under the Debit column, and the total is equal to the amount under the Credit column.
9. On the bottom right click Save and Close. (Ctrl+Alt+D)

The last thing you will need to do once you have completed the above steps is apply the payments to the Vendors open Bills.

1. Choose the Plus icon (+) at the top > Pay Bills.
2. You will notice there is now a Credit showing for each Vendor that you selected in the previous steps.
3. Just check off the box to the left under Pay for each of these Vendors, leaving the Amt to Pay column on the right as 0.00.
4. For the method of payment you can choose Hand-written check and type ACH for the Check number.
5. Again, making sure the Amt to Pay shows 0.00, you can click Pay Bills at the bottom right, and you are all set!

Payment of Bill