What are Expenses and Purchase Transactions
Whenever you set up a new area of QuickBooks, you need to review the Account and Settings related to that area. Before you go into the Account and Settings, you need to make sure you understand the different types of expense and purchase transactions.
• Bill is a transaction you enter when you receive a bill from a vendor but want to pay it later. A bill will increase accounts payable and generally increase expenses. This is available in Essentials, Plus, and Advanced only.
• Expense is a way to enter cash, check, or credit card purchases all in one window. (Note that you cannot print checks that were entered from the Expense window.)
• Checks are a way to enter transactions that reduce your bank account. You can assign check numbers for manual checks or checks that have already been printed. Or you can set checks to print later and print them when you’re ready.
• Bill payment is a transaction used to pay the bills entered. A bill payment reduces accounts payable and can be from a bank or credit card account. This is available in Essentials, Plus, and Advanced only.
• Purchase order is a non-posting transaction used to tell a vendor you want to order goods or services. This is available in Plus and Advanced only.
• Vendor credit is used to record either a refund or return from a vendor that reduces accounts payable. This is available in Essentials, Plus, and Advanced only.
• Credit card credit is a transaction that records a credit card refund from a vendor
All these transactions relate to monies going out. Some of these transactions can be launched from more than one access point, whereas others can be launched only from one.