How to Record Bills Using Service Items in QuickBooks Online

How to Record Bills using Service items in QuickBooks Online By Goshen Bookkeeping

There are two ways to enter bills into QuickBooks Online. One way is to use the product/service details and another way is to use the category details option.

Watch the video or read the guide to learn how to record bills using a category and a service item in QuickBooks Online.

Steps to Record Bills in QuickBooks Online

To get started, log into qbo.intuit.com.

Click on the Quick Create (+) icon.

Under the vendor column, you can select Bill. QuickBooks Online will open a bill entry screen.

In the bill entry screen, select an existing vendor from the list or create a new one.

For this example, I will select Goshen Bookkeeping & Consulting as the vendor.

GBC Tip: Everything you enter in the bill entry screen must match the physical bill statement you receive from your vendor.

Record a Bill Using a Category

Fill in the details on the bill screen:

  • Enter the bill terms

  • Enter the bill date

  • Enter the bill number

  • Location (aka Division or Departments) = without donor restrictions

  • Under the Category details, record the following:

    • Category = expense account

    • Description field = purpose of the bill

    • Quantity = enter 1

    • Rate = enter the bill total amount or leave blank

    • Amount = bill total amount

    • Billable = leave unchecked

    • Customer/project field = enter a customer, donor, or member’s name you want to apply to the bill for internal reporting

  • Class = Admin or program

  • Memo field = repeat the description field text from above in this field

  • Attachment field = add the electronic copy of the bill

Once everything entered correctly, click save and close green button to exit the bill entry screen or click save and new.

Record a Bill Using a Product or Service Item

Using the product/service details section is a great way to record bills that are billable to a grant for reimbursements.

GBC Tip: Make sure you have already set up a service item that is linked to an expense account in your general ledger under the products/services list.

Fill in the details on the bill screen:

  • Enter the bill terms

  • Enter the bill date

  • Enter the bill number

  • Location (aka Division or Departments) = without donor restrictions

  • Under the product/service details, record the following:

    • Product/Service = select your product or service item

    • Description field = purpose of the bill

    • Quantity = 1

    • Rate = enter the bill total amount or leave blank

    • Amount = enter the bill total amount

    • Billable = check this box

    • Customer/project field = select a customer or grant funder you want to apply to the bill

    • Class = Admin or program

  • Memo field = repeat the description field text from above in this field

  • Attachment field = add the electronic copy of the bill

  • Click the Save and close

Review the Bills

To see both of the bills we entered, click on the Expenses tab at the left navigation bar and then select the Expenses tab. The bills will show at the top of the screen based on bill date.

You can click on the Vendors tab, locate your vendor name, and click on it to see the list of bills entered.

Now you know how to record your bills from vendors in QuickBooks Online and make them billable to a grant.

Questions about using QuickBooks Online to manage your nonprofit’s finances? Contact me - I am happy to help!