QuickBooks: Understanding Payment Types

A company can pay bills using different payment types such as your banks BillPay service, physical checks, credit card, electronic transfers (EFT) or wire/ACH.  For each payment type, a separate batch of transactions should be done and payment types should not be combined.

From the Home Page, click “Pay Bills”.


When the payment screen opens, all the unpaid bills will appear if the “Show all bills” button is selected.  Click on the bills to be paid for that particular payment type.  For example, click all the bills that will be paid by printing and mailing a physical check.  For the method choose “Checks”.  Notice the Account will change to your checking account (make sure you select the correct bank account if you have multiple accounts).   Click “Pay Selected Bills” and complete the check run process.

If your next batch of transactions were paid by credit card, you start again with the “Pay Bills” screen and choose those bills you paid with a credit card.  For the method choose “Credit Card”.  Notice the Account will change to your credit card account.  Click “Pay Selected Bills” and that completes the recording of those payments within QuickBooks.  Repeat for all different payment types.


Note: See our archived Solution “Enter credit card charges vs. Enter bills” from Dec. 30, 2012, http://svaccounting.com/solution-archive/, for more details on deciding when to actually enter a bill for a payment to be made with a credit card.

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