What's the difference between paying a bill and a payment to a supplier

JonJon Member Posts: 65
edited August 2019 in Accounts Business Range
Just wondering when I incur a business cost should I a) create a new bill and then create a payment or b) create a new payment to a supplier. Is there any difference in the accounting outcome?

Comments

  • ZappyZappy Accredited Partner Posts: 4,428 ✭✭✭
    edited August 2019
    The main reason to create a bill in the system is a prompt to yourself to pay. Another reason is if you are using the accrual basis for gst. If you are paying gst on a cash basis and if you are confident of being able to keep track of payables then you might as well write a cheque (or enter a direct debit) to pay the account. You might use bills if you have a different person entering the accoubts from the person whom is paying them. Kevin t:0407744914
  • JonJon Member Posts: 65
    edited May 2017
    Thanks for that Kevin. I've usually paid already at POS so 'payment to a supplier' records that. And I'm not registered for GST.

  • ZappyZappy Accredited Partner Posts: 4,428 ✭✭✭
    edited August 2019
    Happy to help Jon. I had a client years ago insisted on entering bills already paid when they reported on cash. I tried to explain how it was double handling everything but they wouldnt understand.
  • JonJon Member Posts: 65
    edited July 2017
    Having just printed out  an income tax summary, I notice that any payments to suppliers are not included among the expenses in the report! That's not good :-( How do I rectify that?
  • NickNick Member Posts: 4
    edited July 2017
    Hi Jon and Kevin, I have a similar question and glad that its being discussed here. To recap on what you have said here.

    1. If it is just expenses for the business (parking, stationary etc) then we should just put in as 'make payment'. If it is a suppliers invoice which will be paid later, then it should be entered as a 'bill'?

    2. Following on from Jon's concern above. How do we make sure that our reports (P&L and BAS) picks up these costs and the relevant GST correctly.
  • ZappyZappy Accredited Partner Posts: 4,428 ✭✭✭
    edited August 2019
    Jons concerns are not relevant if you are reporting on cash. As long as the payment is entered the gst will be picked up. Its the way the sytem is designed to work.
  • NickNick Member Posts: 4
    edited August 2019
    Kevin, can you respond to the question 1 above. Thanks

  • ZappyZappy Accredited Partner Posts: 4,428 ✭✭✭
    edited July 2017
    Nick theres no option "make payment". Delighted to be of assistance.
  • NickNick Member Posts: 4
    edited July 2017
    1.So what is the difference between 'make payment' and 'Bill'? They seem very different!
    2.How can you make a quick entry to make sure you capture general business expenses (parking, stationary etc)
  • NickNick Member Posts: 4
    edited July 2017
    Kevin,

    The videos on http://go.reckon.com/newreckonone-videos/ show both make a payment and enter a bill. That said, the video on 'make a payment' is acturally 'make a cash payment'. Do you have access to the correct video link?

    Cheers,

    Nick


  • ZappyZappy Accredited Partner Posts: 4,428 ✭✭✭
    edited July 2017
    Nick, I think you mean "write cheques". There is no option to "make payment". If you write a cheque then you are making a payment. If you pay a bill then you are paying a bill. Writing a cheque doesn't require a bill. Paying bills does. Have you opened the box of software? There's lots thats complicated about Reckon but this is one of the simpler things. 
  • ZappyZappy Accredited Partner Posts: 4,428 ✭✭✭
    edited July 2017
    Nick I noticed you are talking about Reckon One. This is the Reckon Business Range board. I am referring to the boxed software not Reckon One. It's a completely different program. Glad we cleared that up. 
  • JonJon Member Posts: 65
    edited July 2017
    Are there any reasons why 'payments to suppliers' are not showing up in any reports? All accounts/Categories/payees are ticked in the report customisation.
    If instead I create a bill and payment, then that DOES show up in the report.
  • JonJon Member Posts: 65
    edited July 2017
    *quietly whimpering* ;-)
  • John GJohn G Reckon Staff Posts: 2,283 ✭✭
    edited July 2017
    Hi Jon,

    Does the Report Suppliers & Payables > Transaction list by Supplier, provide you with what you want?

    You can filter this report for payment items - like Bill Pmt - Cheque, Cheque (for Write Cheque ), credit Card charges and Liability Cheque for payments of liabilities withheld from processes like Payroll.  Memorise it for easy use at a later time.


    regards,
    John
Sign In or Register to comment.