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Paying QuickBooks Bills with a Credit Card or Vendor Credits

Paying your QuickBooks Bills can be easier (even pain-free!) – when you use your software to its fullest capacity.

QuickBooks Pay Bills with a Credit Card

Company owners and bookkeepers often use credit cards to pay QuickBooks bills.

And those who appreciate the convenience of paying bills using credit cards often ask how to properly do it in QuickBooks Pro, Premier, or Enterprise Desktop.

Why Pay Bills With A Credit Card?

Paying QuickBooks Bills with Credit Cards and Vendor Credits

Many business people choose to pay bills with a credit card. They may do it because of the ease and convenience of paying by phone or online, the person paying the bill may be at the vendor’s site and wants to pay the bill while there, it may be for security or tracking purposes, and/or to earn bonus points for travel or additional products.

Paying QuickBooks bills with a credit card is a common occurrence – and one that you’ll want to know how to handle and properly account for in QuickBooks.

Credit Card Payments In QuickBooks Bill Payments

Situation 1:  You’ve entered a bill into your QuickBooks, and it’s now listed as an outstanding payable.  You’ve just determined that some of these QuickBooks Bills were (or will be) paid with a credit card.  What do you do?

To record your Credit Card Bill payment in Quickbooks:

  • Paying QuickBooks Bills with Credit Cards and Vendor CreditsGo to the bottom of the Bill Payments screen, and locate the “Method” field.
  • Change it from ‘Check’ to ‘Credit Card’.
  • Then go to the ‘Account’ field, and choose the credit card account that you’ll be using for payment.
  • Select the Bill(s) you want to pay with a credit card.
  • Click on the “Pay Selected Bills” button and Shazam(!!)  your Bill payment is properly recorded AND your credit card balance is increased.

Warning About QuickBooks Bill Payments Using Credit Cards

Just remember! QuickBooks will ‘remember’ that you paid your Bills with that credit card, and the next time you pay Bills – guess what – it will default to the most recent payment ‘Method’ you used.

So if you just paid some QuickBooks Bills via Credit Card, and later choose to pay Bills in a different way (e.g., to pay the Bills from a checking account), and if you forget to change the “Method” and “Account” fields, you could end up with a lot of payments going against the credit card account. Aaargh! You may find yourself with lots of manual corrections to pull through.

So always check the “Method” field at the bottom of the screen before you hit the “Pay Selected Bills” button.

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Vendor Credits in QuickBooks: Paying Bills with a Vendor Credit

Situation 2:  It’s time to pay the company bills.  You want to be sure that you don’t overlook any outstanding vendor credits that should reduce the amount you pay to a vendor.

Here’s a quick way to make sure that you find – and take – all of the vendor credits you deserve as you pay your bills using QuickBooks!

  • Before paying Bills, review the current status in QuickBooks of the bills to pay.  My favorite “background review’ reports include the:
    • Accounts Payable Aging Summary, 
    • Unpaid Bills Detail, and
    • Vendor Balance Detail.
  • When it’s time to actually pay your Bills, and you place a check-mark in the white column for a Bill that you want to pay, if a vendor credit exists, the Set Credits button at the bottom of the screen will transform itself into a ‘clickable’ button:
    • You’ll be able to see how many credits exist and the total $ amount available.
    • You can then click the button and select the credit(s) that you want to apply to that Bill.
    • QuickBooks will apply the vendor credit(s) to the Bill and reduce the amount that shows in the ‘Amount to Pay’ column.
    • If at all possible, apply smaller credits against larger bills.   Why?  When a credit pays the entire bill, the credit will “disappear”. 
    • For better tracking, apply a smaller credit to a larger bill so the information will show up on the check voucher that goes to the vendor, and makes it easier for them to see how you’ve applied the credits.

These two tips should help you pay all of your QuickBooks Bills more efficiently – regardless of how you choose to pay them.

Want More Info On QuickBooks Bill Pay?

If this information helped you, check out our affordable QuickBooks subscription training series. If you’d like individual coaching, or have any questions, please give us a call or send us an e-mail today.

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