We began exploring Accounts Payable last week with a look at setting the preferences for Vendors, Billing, Expenses and Purchase Orders in QuickBooks Online. In this lesson we want to look at the Vendor Center and it's relationship to Accounts Payable.
Everyone using QuickBooks Online for their Small Business has two primary concerns. The first is providing a product or service they're passionate about. The second is making a profit.
The QBO Vendor Center
The Vendor Center is the hub for cost transactions within QBO. If you haven’t had a chance to use the Vendor Center or are still new to it, take a look around to gain some familiarity. As you learn about and work in this area of QBO, your confidence will grow—knowing that every Expense you create will get accounted for come tax season! Today, we’ll start out with how to manage the Vendor List.
To get there, select Expenses in the left sidebar, then the Vendors tab at the top. The Vendors screen (like the one shown below) opens.
At the Left Sidebar select Expenses, then choose the Vendors tab (Vendors are displayed in alphabetical order unless otherwise filtered).
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The bar at the top of the screen is called a Money Bar. Click on the colored boxes to filter the Vendor List and see who has open Purchase Orders, Overdue Bills, Open Bills, and Expenses Paid in the last 30 days.
The QBO Vendor Center 'Money Bar' displays key information regarding the 'selected' Vendor(s).
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To view the complete list of transactions again, click the blue Clear Filter / View All link.
To Search for a Vendor, use the box above the grid (the red box shown in the illustration below). Try searching by company name, contact name, and phone number.
Search features make finding a Vendor quick and easy when you have only limited specific information.
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You can also choose which information fields show in the grid. Click on the 'Baby' Gear at the top right of the grid (as opposed to the big main Gear with QBO’s tools) to select the fields you would like to see.
Check Include Inactive to view Vendors you previously inactivated.
The other two buttons allow you to Print your Vendor List and Export it to PDF or Excel.
Adding Vendors
There are two methods for adding vendors, using the 'Dialog Box', or 'On the Fly'.
Adding Vendors via the Dialog Box
Click the New Vendor button to add a Payee to your list.
Select New Vendor from the Vendor Center to add a new vendor (payee) to QuickBooks Online.
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A New Vendor form (like the one shown below) opens.
Fill in the appropriate information for your new vendor.
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Enter the Address Info, Email, Phone, and Website for the New Vendor.
If they have a standard Billing rate and Terms, you can enter them here.
The Account No. field is your account number with them.
If the Vendor is eligible for a 1099, enter the SS# or FEIN# in this window and check the Track payments for 1099 box. QuickBooks Online tracks all payments for 1099s at the end of the year.
If you later stop working with this Vendor, click Make Inactive so they don’t show up on your lists anymore. Your history remains intact, and all transactions will still show up on reports.
Adding Vendors On the Fly
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Vendors can also be added on the fly in the middle of a transaction by clicking on the Add New option at the top of any transaction’s Payee field. Click Details to add address & phone, or just choose Save to add it quickly.
PEBCAK! Be sure to finish by clicking Save in the pop-up window!
Generic Vendors
Just like with creating Generic Customer Names as we discussed in a previous article, the same holds true with Generic Vendors. You don’t want to see every restaurant you’ve ever eaten at, every gas station you’ve ever been to, every parking lot in town (or even every branch of Office Depot you’ve ever shopped at!).
Instead, make these Vendor accounts: Restaurant, Gas Station, and Parking Lot. When the Payee appears in the Banking Feed or you manually enter a transaction, change it to this Generic Payee instead. The Banking Feed will still include the original Payee in the memo line.
Using a 'Generic Vendor' for Bank Feed transactions rather than individual vendors for each transaction.
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Working with the Vendor List
Click on a Vendor from the Vendors List to open their Details card.
To change the Vendor’s information, click the Edit button next to their name.
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Leave comments about the Vendor in the Notes area. Notes also available inside the Edit window.
Select New Transaction to enter a transaction for this Vendor.
Each row also has a selection of Actions on the far right.
Lesson Wrap-Up
Now that you’re familiar with the Vendor Center, Vendor screens, and Vendor Detail cards, you know where to go. Starting next week, we’ll learn about what to do while you’re there!
If you found this article helpful, I’ll be giving a free webinar about Vendor Transactions for Insightful Accountant on August 12, 2020. You can REGISTER HERE.
If you can’t wait until then, my QuickBooks Online Fundamentals class demonstrates these techniques and more. Use this link to check out my Royalwise offering(s) and be certain to use Coupon Code IA10 for a 10% discount.