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How to Enter a Vendor Bill in QuickBooks Online

A how-to guide for entering vendor bills in QBO, from selecting the vendor and bill date to coding it to the correct expense account and attaching the original document.

A bill is a record of money you owe to a vendor for something you've received but haven't paid for yet. Entering it in QBO records the expense in the right period and tracks the outstanding payable so nothing slips through.

What You'll Need

  • Access to QuickBooks Online
  • The vendor's bill or invoice (digital or physical)
  • The bill amount, date, and due date (or payment terms)

Normal Procedure

Entering a bill in QBO

  1. Go to + New > Bill.
  2. In the Vendor field, select the vendor or type their name to add them.
  3. Enter the Bill date (the date on the vendor's invoice, not today's date unless they're the same).
  4. Enter the Due date or select the payment terms (e.g., Net 30).
  5. In the line items section, select the Account this expense belongs to (e.g., Office Supplies, Professional Fees, Rent), add a Description if helpful, and enter the Amount.
  6. If the bill includes sales tax paid on a business purchase, record it accurately: your NCO bookkeeper will ensure it's coded to the correct account.
  7. Click Save and Close.

The bill is now recorded as an expense and an accounts payable liability. It will appear in your AP aging report until it's paid.

Uploading a receipt or bill document

It's good practice to attach a copy of the original bill:

  1. Open the bill you just created.
  2. Click Attachments at the bottom of the screen.
  3. Upload the PDF or image of the bill.

This keeps your records complete and makes it easier to verify details if questions come up later.

Abnormal Procedures

You accidentally entered the same bill twice.

Check your AP aging report: if you see a duplicate, open the second entry and void it. Don't delete it. Let your NCO bookkeeper know so they can confirm the reversal is recorded correctly.


The bill includes both taxable and non-taxable items.

Add separate line items for each: one for the taxable amount and one for the non-taxable amount. This keeps your expense records accurate and makes it easier to review costs by category.


You received a bill in a foreign currency.

See your NCO bookkeeper before entering it. Multi-currency bills require the exchange rate to be recorded correctly and multi-currency to be enabled in your QBO settings.


The bill is for a fixed asset (equipment, vehicle, etc.) rather than an operating expense.

Don't code it to an expense account. Fixed assets get recorded differently. See: How to Record the Purchase of a Fixed Asset. Let your bookkeeper know if you're unsure.

FAQ

What's the difference between entering a bill and entering an expense?

A bill is for something you'll pay later: entering it creates an accounts payable. An expense (+ New > Expense) is for something you're paying immediately. Use bills when the vendor has given you payment terms; use expenses for same-day purchases.


Do I need to enter every small purchase as a bill?

No. Small purchases paid immediately by card or bank transfer should be entered as expenses, not bills. Bills are for situations where you're paying at a later date.


What if I don't have the bill yet but I know the expense happened?

Enter an estimate of the amount using an accrual entry, or wait until you have the bill. Your NCO bookkeeper will advise on the correct approach: it depends on whether the expense needs to be in a specific period for tax purposes.


How do I know which expense account to use?

Refer to your Chart of Accounts. If you're unsure, ask your NCO bookkeeper: they'd rather set it up correctly the first time than reclassify it later.