When paying for something in Quickbooks using your bank account (debit card / electronic payment) or your credit card, what is the best method to enter the transaction?

Do you use Write Checks, Enter Credit Card Charges, or Enter Bills (and then later Pay Bills)?

Write Checks or Enter Credit Card Charges

Use Write Checks for bank account transactions (including PayPal) and use Enter Credit Charges for credit card transactions when:

  • Paid full amount at time of purchase (you were not invoiced or sent a bill to pay later)
  • Only used one payment source
  • Paid in a single transaction

Enter Bills

You use Enter Bills when:

  • Purchased an item and received a bill or invoice but will make your payment at a later date
  • Paid for an item using several different payment sources (ex: 2 different credit cards)
  • Paid over several transactions

What if something seems like it would work using either transaction method?

If you are unsure, the safest method would be to enter it as a bill.

Paid for something with more than one source, how do I enter this?

First, you enter it as a bill. Next, go to pay bills, and select the bill to pay. On the right hand side there is the Amt. To Pay column. Enter the amount you paid with your first source, and then proceed to pay it.

Once that transaction is complete, go back to pay bills and do the same for the second source and so on.

Paid for something over several transactions, how do I enter this?

Enter the item as a bill. Each time you pay, go to pay bills, and select the bill to pay. On the right hand side there is the Amt. To Pay column. Enter the amount you paid on the first transaction and then proceed to pay it.

Next time you pay off a portion of the bill, go back to pay bills and repeat until you are done paying the bill.